The Trump administration has unveiled an agreement that aims to provide patients with access to discounted prescription drugs through a new federally operated website.
According to the White House, the deal with pharmaceutical corporation Pfizer will result in price reductions of up to 85% on select medications via the direct-to-consumer platform, TrumpRx, as announced during a press conference Tuesday.
Pfizer has also agreed to lower prescription drug costs for Medicaid, the government’s healthcare program for low-income Americans, in exchange for avoiding tariffs, signaling a compromise between the company and the administration.
This announcement follows the president’s recent declaration of a 100% levy on branded and patented drug imports, scheduled to take effect on October 1st.
Pfizer emerges as the first pharmaceutical company to reach an accord after President Trump’s outreach to 17 drug manufacturers during the summer, setting a 60-day deadline for responses regarding price reduction demands, which expired this week.
During the press conference, President Trump referenced a policy designed to align drug prices in the U.S. with those in other nations where they are lower.
He stated, “Pfizer is committing to offer all of their prescription medications to Medicaid, and it will be at the most-favoured nations prices.”
“It’s going to have a huge impact on bringing Medicaid costs down.”
He further indicated expectations for additional agreements with other drug manufacturers in the near future.
In a statement released Tuesday, Pfizer confirmed that the majority of its primary care drugs would be accessible via TrumpRx, though specific medications were not identified.
The company also pledged an additional $70 billion investment in U.S. manufacturing, research, and development.
Pfizer’s agreement is the latest illustration of pharmaceutical companies making concessions to avoid the president’s proposed tariffs on branded drugs for a three-year period.
Albert Bourla, Chief Executive Officer of Pfizer, commented, “We now have the certainty and stability we need on two critical fronts, tariffs and pricing.”
Following the announcement, Pfizer shares experienced a nearly 7% increase on Tuesday.
President Trump acknowledged the possibility of drug prices rising in other countries as a result of his administration’s efforts to lower prices in the United States.
For instance, Eli Lilly has stated plans to increase drug prices in Europe “in order to make them lower” in the U.S.
The ultimate impact of these initiatives, including the direct-to-consumer website slated to launch in early 2026, on drug prices for American consumers remains uncertain, given the influence of insurance companies and other intermediaries.
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