President Donald Trump said Friday afternoon that nine major pharmaceutical companies have agreed to participate in his “most favored nation” drug-pricing policy, a move the White House says will reduce prescription costs for Medicare and Medicaid recipients.
Under the agreement, participating companies will sell certain medications at lower prices—often aligning them with prices paid in other countries. The discounted drugs are expected to be available through a direct-purchase platform called TrumpRx, which the administration says is scheduled to launch in January.
“The pharmaceutical companies were difficult, but they also love our country, they knew it was unfair,” Trump said at the White House. He added that other countries had agreed to “fairer” pricing, citing the administration’s threat of tariffs.
Why It Matters
Trump campaigned on lowering health care costs in his second term, but the results have been uneven. While major drugmakers have agreed to join TrumpRx, the administration is also facing looming questions around the potential end of Obamacare subsidies and ongoing divisions among Republicans over how to keep premiums affordable for the millions of Americans who depend on Medicare and Medicaid.
What To Know
The White House said the agreement will lower the cost of medications used to treat a range of chronic and high-cost conditions, including type 2 diabetes, multiple sclerosis, asthma, HIV, and hepatitis C. State Medicaid programs will be able to access the covered medications at the negotiated prices.
Trump argued the deals would prevent foreign markets from effectively setting U.S. prices, claiming some drugs were being sold in the United States for 10 to 12 times what patients paid in countries such as Germany, France, and Spain.
The White House also said the participating companies pledged to invest at least $150 billion in U.S. manufacturing in the near term, framing the investment as a boost to national health security.
Drug Companies Included in the “Most Favored Nation” Pricing Deal
The administration said the agreement includes:
- Merck
- GlaxoSmithKline (GSK)
- Sanofi
- Genentech
- Bristol Myers Squibb
- Amgen
- Novartis
- Gilead
- Boehringer Ingelheim
Reported Price Cuts Through TrumpRx
The administration said that if patients purchase the following medications directly through TrumpRx, their costs will fall:
- Amgen: cholesterol drug Repatha from $573 to $239
- Bristol Myers Squibb: HIV medication Reyataz from $1,449 to $217
- Boehringer Ingelheim: type 2 diabetes medication Jentadeuto from $525 to $55
- Genentech: flu medication Xofluza from $168 to $50
- Gilead Sciences: hepatitis C medication Epclusa from $24,920 to $2,425
- GSK: reduced prices across its inhaler portfolio; Advair Diskus 500/50 from $265 to $89
- Merck: diabetes medication Januvia from $330 to $100
- Novartis: multiple sclerosis medication Mayzent from $9,987 to $1,137
- Sanofi: blood thinner Plavix from $756 to $16
- Sanofi: insulin products listed on TrumpRx at $35 per month’s supply
What Is TrumpRx?
TrumpRx, announced in September, is designed to let consumers buy medications directly rather than going through insurance.
The White House has presented the program as a way to give Americans more control over what they pay. However, paying out of pocket won’t necessarily be cheaper for every patient, depending on what a person’s insurance plan covers and how it structures copays, deductibles, and pharmacy benefits.
The administration has also positioned the initiative as a contrast to the Biden administration’s approach, which sought to negotiate drug prices through federal programs.
Eliquis Offer for Medicare and Medicaid Patients
Separately, Bristol Myers Squibb (BMS) and Pfizer said they will provide their blood thinner Eliquis for free to Medicare patients. The drug is widely used, and BMS described it as the most prescribed blood thinner on the market.
The announcement said Eliquis will also be available to Medicaid patients for free beginning January 1, 2026.
What People Are Saying
Robert M. Davis, Merck’s chairman and CEO, said in a Friday press release: “As an American company, Merck is proud to work with the Trump administration to further secure our country’s position as a world leader in biopharmaceutical innovation. Today’s agreement marks a pivotal step in ensuring Americans can access medicines they need at lower costs.”
President Donald Trump said Friday: “This is the biggest thing having to do with drugs in the history of the purchase of drugs….This is the biggest frontpage story that you’ll ever see.”
Emma Walmsley, GSK CEO, said in a press release: “Today’s announcement builds on GSK’s strong track record of increasing access and improving the affordability of its medicines worldwide, including an ongoing commitment to responsible pricing. GSK has been at the forefront of respiratory innovation for decades—helping millions of Americans prevent and treat chronic respiratory diseases such as asthma and COPD. Through this agreement, GSK will ensure patients have access to the current portfolio of respiratory medicines while bringing the next wave of innovation to American patients.”
What Happens Next
Trump said that after securing commitments from major pharmaceutical companies, the administration plans to begin discussions with insurance companies about lowering costs on their end as well.
