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Despite President Donald Trump’s controversial tariff-launching “Liberation Day” being just over a year old – and with the legality of most of the tariffs removed by the Supreme Court – the Trump administration surprised the nation on the first anniversary of Liberation Day by announcing new tariffs on several brand-name drugs manufactured outside the United States. This is a move that, in the short term, could drastically increase your drug prices.
Trump’s plan? Imposing 100% tariffs on pharmaceutical companies making drugs abroad instead of in the US. It is a policy designed to reshape the pharmaceutical industry over the long term by encouraging American manufacturing and price concessions, giving large pharmaceutical companies 120 days (and smaller companies 180 days) to negotiate the construction of US-based pharmaceutical plants to avoid tariffs. cnbc. The companies will have time till January 2029 to complete the physical plants.
Some major pharmaceutical companies – such as Pfizer and Johnson & Johnson – have already begun talks. However, others have not yet reached an agreement with the administration, and could be hit with 100% tariffs in just four months. This means, essentially, that without a deal the price of drugs made by the companies could literally double. If, say, a specific drug costs $50 per bottle, a 100% tariff would increase its cost by $100, with that cost increase passing directly on to the consumer.
Although the full list of companies (and their drugs) affected by the 100% tariffs is not yet available, below are some drugs manufactured in foreign countries that could see their prices double by August.
Entresto
- Price of 60 tablets before tariffs (without insurance): $717.42
- Price of 60 tablets after tariff (without insurance): $1,434.84
Easily one of the most widely used prescription drugs for heart failure, Entresto is manufactured by Novartis in Switzerland.
keytruda
- Price of 4mL IV Solution before tariff (without insurance): $6,001.54
- Price of 4mL IV Solution after Tariff (Without Insurance): $12,003.08
Keytruda is one of the best-selling drugs globally, and is used for cancer immunotherapy. It is manufactured by Merck in Ireland.
Lenvima
- Price of 60 capsules before tariffs (without insurance): $25,142.92
- Price of 60 capsules after tariff (without insurance):$50,285.84
Lenvima is a very expensive drug manufactured by Eisai in Japan, and it is used to treat thyroid cancer and kidney cancer in elderly patients.
ozempic/vegovy
- Price for 3 ml subcutaneous solution before tariff (without insurance): $1,011.57
- Price for 3 ml subcutaneous solution after tariff (without insurance): $2,023.14
While recently famous as a weight loss solution, Ozempic/Vegovy is a very common treatment for type 2 diabetes in patients over the age of 50, and is manufactured in Denmark by Novo Nordisk.
Editor’s note: Drug prices are taken from drugs.com.
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