Pfizer CEO Discusses Trump's Direct-to-Consumer Marketing Proposal with Pharma Executives

Pfizer CEO Albert Bourla said that he and other pharma executives discussed President Trump's call for direct-to-consumer marketing as part of his Most Favored Nation policy. Bourla made the remarks during a conference, but it is unclear what specific details were discussed.

Pfizer (NYSE:PFE) CEO Albert Bourla revealed during the company's Q2 earnings call that he and other pharmaceutical executives discussed President Donald Trump's recent call for big pharma to offer direct-to-consumer marketing (DTC) as part of his Most Favored Nation (MFN) policy. Bourla made these remarks days after Trump sent letters to 17 major pharmaceutical company CEOs, including himself, urging them to take multiple measures, including DTC launches at MFN prices, to lower U.S. drug prices to the level of other developed nations [1].

Bourla stated that all executives are "ready to roll up their sleeves and execute" on the DTC initiatives, referring to the discussions. The New York-based pharma giant recently announced a DTC initiative with Bristol Myers (BMY) to offer their blood thinner Eliquis at a 40% discount to cash-paying customers. Bourla, who also serves as the chair of the Pharma Research and Manufacturers of America (PhRMA), added that he has directly talked to Trump regarding MFN and tariffs since "we have a special relationship through the times of Covid" [1].

The directive stems from an executive order Trump signed in May, demanding drugmakers offer U.S. patients the same lower prices available in other countries. Trump's letters to the CEOs include demands for MFN pricing for Medicaid enrollees, guarantees for all new drugs, and a commitment to provide immediate relief from inflated drug prices [2]. The Pharmaceutical Research and Manufacturers of America did not immediately return a request for comment.

The stock prices for several companies that received the letters slipped between 1% to 4% in mid-afternoon trading, including Eli Lilly, Merck, Johnson & Johnson, GSK, and Amgen. The S&P 500 Pharmaceuticals Industry Index was down a little more than 2% [2].

It remains unclear what authority Trump has to demand certain prices in the private market without Congress' involvement. Some industry experts have described the May executive order as more bark than bite. Trump's previous attempt to establish an MFN rule for certain drugs in Medicare was blocked by federal courts and rescinded by President Biden in 2021 [2].

References:
[1] https://seekingalpha.com/news/4478676-pfizer-ceo-focuses-trumps-direct-consumer-demand
[2] https://ca.news.yahoo.com/frustrated-continued-high-drug-costs-192253026.html