President Donald Trump thanked drug makers Novartis and Pfizer for delaying drug price increases until at least the end of the year, giving Trump a chance to roll out his plan to reduce drug prices.
Switzerland-based Novartis said on Wednesday it decided to forego planned price hikes in June after considering multiple factors.
“We applaud Pfizer for this decision and hope other companies do the same,” Trump said in a July 10 tweet. “Great news for the American people!”
Novartis Chief Executive Vas Narasimhan said that he did not have a direct talk with Trump on drug prices but said his company has been speaking to the federal Department of Health and Human Services about Trump’s plan.
“We don’t plan to take any further price increases in the United States for 2018,” Narasimhan said. “Right now, in a very dynamic environment in the United States ... we view it as the prudent course.”
Pfizer agreed to postpone the second hike until the end of the year or until Trump’s plan to lower drug prices goes into effect—whichever is sooner.
Trump announced in May a plan to lower drug prices by, among other things, giving the government better tools to negotiate drug prices for Medicare beneficiaries and counter foreign government regulations that often keep drug prices artificially low.