Biden administration strikes drug price-cut deal with 9 pharma firms
U.S. President Joe Biden announced on Wednesday a landmark agreement with nine major pharmaceutical companies, under which the firms will lower prices for select prescription drugs in exchange for a three-year delay on further pricing restrictions.
The deal marks a rare compromise between the White House and the pharmaceutical industry, which has long pushed back against federal efforts to curb drug costs. While details on specific drugs and price reduction percentages have not been disclosed, administration officials described the agreement as a “significant step” toward making medications more affordable for American households.
Pharma firms gain breathing room amid regulatory pressure
For drugmakers, the three-year moratorium on additional pricing rules provides temporary relief from ongoing regulatory scrutiny. The industry has faced mounting pressure in recent years, including the Inflation Reduction Act’s provisions allowing Medicare to negotiate drug prices – a measure the firms have challenged in court.
Critics of the deal argue that a three-year delay could limit immediate cost savings for consumers, but the Biden administration defended the timeline as a “balanced approach” to align corporate interests with public access to affordable care. Market reactions were mixed on Wednesday, with shares of several involved pharma companies holding steady as investors weighed the long-term implications of the agreement.