On Tuesday, President Trump announced an agreement with Pfizer to significantly reduce drug prices and launch a government-operated website for direct consumer drug sales. Trump stated that this initiative will lead to price reductions of up to 100% or even higher, addressing the long-standing issue of U.S. consumers subsidizing global drug development costs. This new agreement aims to rectify this unfair practice and mark a milestone in healthcare policy.
Under the agreement, Pfizer has agreed to offer some of its most popular existing drugs to consumers at discounted prices ranging from 50% to potentially 100%. The company has also committed to providing all prescription drugs to Medicaid at “most favored nation prices,” which is expected to substantially lower Medicaid costs.
Moreover, Pfizer has pledged that all new drugs introduced to the U.S. market in the future will be sold at reduced “most favored nation costs.” The White House has confirmed the launch of a website called TrumpRx, allowing consumers to purchase drugs online at discounted rates negotiated by the government.
According to a fact sheet released by the White House, anticipated discounts on certain drugs include:
This agreement comes as a result of pressure exerted by the Trump administration on 17 major pharmaceutical companies since July. The companies were required to commit to aligning drug prices with prices paid overseas by September 29th. Health Secretary Robert F. Kennedy Jr. confirmed ongoing one-on-one negotiations between the U.S. government and pharmaceutical companies, with Commerce Secretary Howard Lutnick leveraging tariff threats as additional bargaining tools.
Pfizer’s CEO, Albert Bourla, stated that the agreement is “correcting an unfair situation” and mentioned that if Pfizer relocates drug production to the U.S., the Trump administration will provide a three-year exemption from the tariffs imposed under Section 232.
Pfizer becomes the first company to reach such an agreement, with Trump suggesting that Eli Lilly may be the next to follow suit. He mentioned, “They’ll all come in over the next week. We’re dealing with all of them.”