Pfizer to Share Higher Overseas Drug Revenue with U.S. under New HHS Contract
The US Department of Health and Human Services (HHS) will receive a portion of Pfizer's increased drug revenue if the company charges higher prices abroad, according to a report on Sunday. The agreement is part of a “most favored nation” contract that ties overseas pricing to U.S. rates. This arrangement could impact how pharmaceutical companies set international drug prices and may influence future negotiations between HHS and other drugmakers. It also reflects ongoing efforts by the Biden administration to reduce prescription costs for American consumers through price controls on medications sold domestically. Pfizer, one of the largest global biopharmaceutical firms, has faced increasing pressure from policymakers over high U.S. drug pricing.
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