Trump announces lower drug price deals with nine pharmaceutical companies

President Donald Trump announced Friday that nine major drugmakers have agreed to lower U.S. prescription drug prices. The deals cover Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi, and require Medicaid prices to be aligned with what those companies charge in other developed countries. In addition, new drugs from these firms will be priced at the most-favored-nation rate across the United States for all buyers, including commercial plans, cash pay customers and government programs such as Medicare and Medicaid.

Administration officials described the agreements as a milestone in federal efforts to tackle high U.S. drug costs, while noting that prices for patients depend on coverage, plan formularies and other factors. Many Americans rely on employer plans or government programs, which shield them from some costs, but discounts could still leave some patients paying hundreds of dollars a month for certain therapies. Medicaid programs already secure some of the most favorable drug pricing, so observers caution the policy could have complex effects on access, pricing dynamics and pharmaceutical innovation. William Padula, a pharmaceutical and health economics professor at USC, said the current framework is significant but it is not yet clear how much the moves will change health outcomes or costs in the long run.

Under the package, the companies will also launch the TrumpRx platform, set to launch in January, which will allow people to buy medicines directly from manufacturers. In addition to price reductions, Merck, GSK and Bristol Myers Squibb pledged large donations of active pharmaceutical ingredients to a national medical reserve and to help formulate and distribute medicines such as antibiotics, rescue inhalers and blood thinners for emergency use. Bristol Myers Squibb said it would donate Eliquis, its blood thinner, to Medicaid on a free basis under the program.

Industry observers note the donations are intended to support health equity and acknowledge that the sector can pursue profits elsewhere. Padula said the move could improve access in the near term for some patients and represents a meaningful step toward greater equity, even as the long-term impact on research and development remains to be seen. Other major drugmakers — Pfizer, AstraZeneca, EMD Serono, Novo Nordisk and Eli Lilly — had struck similar agreements with the Trump administration earlier this year, with terms not disclosed.

Trump has argued that U.S. prices run higher than international levels and has linked his pricing push to pressure tactics, including a claim that the administration effectively threatened tariffs of about 10% to push companies to comply. Officials say the government’s latest round of deals has resulted in 14 companies agreeing to lower prices since Trump publicly urged U.S. firms to engage with the issue after letters to 17 pharmaceutical executives were sent earlier in the year.

Analysts caution that a price-lowering agreement is only a first step and that it could take years to measure its impact on patient access and outcomes. Padula said the moves are undeniably influential for the sector and could affect corporate strategy, but the real test is whether more patients are able to obtain the medicines they need and stay adherent.