Merck Reaches Historic Agreement With Trump Administration To Lower Drug Prices, Advance Enlicitide As Potential First Oral PCSK9 Inhibitor And Expand U.S. Investment

Enlicitide has potential to be first approved oral PCSK9 inhibitor designed to help meet critical unmet needs for patients and will be offered at an affordable price to eligible Americans through a direct-to-patient program

Merck has committed more than $70 billion in U.S. investments to boost domestic production and innovation

Merck (NYSE:MRK), known as MSD outside of the United States and Canada, today announced a historic agreement with the Trump administration to ensure its prescription medicines are both accessible and affordable for Americans. This agreement enables Merck to continue its long-standing commitment to develop and deliver life-changing medicines and vaccines, and ensure Americans have access to those innovations at lower costs.

"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," saidRobert M. Davis, chairman and chief executive officer, Merck. "For too long, global pricing imbalances have shifted the financial burden of groundbreaking research and development onto the U.S. health care system and ultimately, American patients. Merck remains committed to expanding access and improving affordability across the system."

Merck is working with the administration to reduce disparities in drug prices between the U.S. and other nations so American patients no longer shoulder a disproportionate share of the cost of innovation. Merck is voluntarily addressing all four components of the president's July letter and taking steps that will help ensure Americans can benefit from lower prices and broader access to prescription medicines.

Information on Merck's agreement with the Trump administration

Merck plans to provide key products through a direct-to-patient program at affordable prices for eligible patients in the U.S. This currently includes JANUVIA, JANUMET and JANUMET XR, and will be expanded in the future to include enlicitide decanoate following FDA approval.

JANUVIA, JANUMET and JANUMET XR will be available to eligible American patients at a cash price — approximately 70% off of the current list price — through a direct-to-patient program.

Enlicitide, a novel candidate to lower LDL cholesterol, was designed to deliver PCSK9 antibody-like efficacy 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.

Additionally, the company reached an understanding with the U.S. Department of Commerce to delay Section 232 tariffs for three years, enabling the company to make investments in the United States to reshore manufacturing for American patients.

Merck investments in American innovation

Merck has accelerated its commitment to U.S. innovation and manufacturing, building on its 15 manufacturing and R&D facilities and a strong workforce in the U.S. of more than 30,000. The company has invested over $12 billion in U.S. manufacturing since 2017 and $81 billion in U.S.-based R&D since 2018, supporting tens of thousands of American jobs. Over the next several years, Merck will invest more than $70 billion in capital and R&D spending, including at least $12 billion in capital expenditures, to drive long-term growth and strengthen the U.S. position as a global leader in biopharmaceutical innovation. This includes Merck's recent announcements of manufacturing facilities in Virginia, Kansas and Delaware, which alone will create 1,200 full-time jobs and support 15,000 construction jobs.