Pfizer’s Deal on Drug Prices Gets at the Right Idea: Editorial

American taxpayers spend billions of dollars annually supporting pharmaceutical development. Yet the US continues to pay more for medicine than any other country in the world. This discrepancy so disturbed the president that top health officials say he routinely called them on nights and weekends, urging a solution.

After months of “haranguing and harassing,” their efforts appear to be paying off. Last week, the administration announced a deal with Pfizer Inc. to (among other things) better align its US prices with those in other rich nations. So-called most-favored-nation pricing would apply to existing drugs the company sells to ...