Move FM Global News

WASHINGTON, D.C.: U.S. President Donald Trump and Germany’s Merck KGaA announced a deal to sharply cut the price of key in-vitro fertilization (IVF) drugs in the United States, part of a broader push to lower healthcare costs while shielding the German drugmaker from potential U.S. tariffs.

Under the agreement, Merck’s U.S. unit EMD Serono will sell fertility treatments such as Gonal-f, Ovidrel, and Cetrotide directly to consumers at discounts of up to 84 percent off list prices when all three drugs are used together in an IVF cycle.

Trump said the initiative was part of his administration’s plan to make fertility care more affordable and accessible. “We’re also taking historic steps to vastly expand access to insurance coverage for fertility care, including IVF, something that, as you know, was not covered,” he said from the Oval Office.

Senior administration officials said the price cuts would save families roughly US$2,200 per IVF cycle, a significant reduction for treatments that can cost between $12,000 and $25,000 each time.

As part of the deal, Merck reached an agreement with the U.S. Commerce Department to exempt its fertility drugs from future industry-specific tariffs, provided it increased investment in American manufacturing and research.

Merck, one of the world’s largest producers of fertility treatments, said its best-selling IVF drug Gonal-f generated $973 million in sales last year. The discounted treatments will be available in early 2026 through TrumpRX, a new federal website designed to let consumers buy certain prescription drugs directly from manufacturers.

Trump added that Merck had agreed to price all new drugs launched in the U.S. at the same levels it charges in other developed countries, a key plank of his administration’s campaign to reduce prescription costs.

The move builds on similar deals Trump has recently struck with Pfizer and AstraZeneca. Both agreed to lower prices for certain medications in the Medicaid program for low-income Americans in exchange for tariff relief.

In February, Trump signed an executive order directing the government to expand access to IVF and lower its costs. The administration said Thursday it would soon issue new guidance to make it easier for employers and small businesses to offer separate fertility insurance coverage to workers.

“There will be no mandate or subsidies,” a senior official said. “But this option will expand coverage and encourage more employers to provide fertility benefits directly.”

Merck also said it plans to seek U.S. approval for its fertility drug Pergoveris under the FDA Commissioner’s National Priority Voucher program, which shortens review times from as long as a year to just one or two months.