US biopharma powerhouse Merck has announced a landmark agreement with the Trump administration aimed at making its prescription medicines more accessible and affordable for Americans. 

 

The deal is designed to ensure that the company can continue delivering life-changing medicines and vaccines while easing the financial burden on patients.

 

“As an American company, Merck is proud to work with the Trump administration to further secure our country’s position as a world leader in biopharmaceutical innovation. Today’s agreement marks a pivotal step in ensuring Americans can access medicines they need at lower costs,” said Robert M. Davis, chairman and chief executive officer of Merck. 

 

“For too long, global pricing imbalances have shifted the financial burden of groundbreaking research and development onto the US health care system and ultimately, American patients. Merck remains committed to expanding access and improving affordability across the system.”

 

Under the agreement, Merck will work to reduce disparities in drug prices between the US and other countries, ensuring Americans no longer shoulder a disproportionate share of the cost of innovation. The company is voluntarily addressing all four components of President Trump’s July letter and taking steps to broaden access and lower prices for prescription drugs.

 

Merck will provide key products through a direct-to-patient program at significantly reduced prices for eligible patients. JANUVIA, JANUMET, and JANUMET XR will be available at approximately 70% off the current list price, with plans to expand the program to include enlicitide decanoate once it receives FDA approval.

 

Enlicitide, a novel cholesterol-lowering candidate, is designed to deliver PCSK9 antibody-like effects in an easy-to-use daily pill. 

 

"Although existing injectable PCSK9 inhibitors are effective, they remain widely underused. The cardiovascular (CV) epidemic is the leading cause of deaths in America with heart attacks and stroke contributing to most of the CV deaths — one person dies every 36 seconds from cardiovascular disease. If approved, we intend to make enlicitide broadly available as an affordable option for American patients to help address the CV epidemic," the company said.

 

Merck has also reached an understanding with the US Department of Commerce to delay Section 232 tariffs for three years, clearing the way for domestic manufacturing investments. The company has already invested over $12 billion in U.S. manufacturing since 2017 and $81 billion in U.S.-based R&D since 2018.

 

Looking ahead, Merck plans to invest more than $70 billion in capital and R&D spending, including at least $12 billion in capital expenditures, to drive growth and strengthen the US’s role as a global leader in biopharmaceutical innovation.