President Trump announced that nine major drugmakers agreed to lower U.S. prescription prices and align some Medicaid rates with prices charged in other developed countries. Newly launched drugs from these firms will be subject to a nationwide most-favored-nation pricing policy across commercial, cash-pay, Medicare and Medicaid markets. Companies will also supply APIs to a national reserve and sell pharmacy-ready medicines via the upcoming TrumpRx platform; Bristol Myers Squibb pledged to donate Eliquis to Medicaid. Experts say the deals are notable but that it will take years to judge the impact on access and research and development.
Trump Announces Deals With Nine Drugmakers to Lower U.S. Prescription Prices
President Donald Trump speaks during an event on prescription drug prices in the Roosevelt Room of the White House, Friday, Dec. 19, 2025, in Washington. (AP Photo/Evan Vucci)
U.S. President Donald Trump announced that nine major pharmaceutical companies have agreed to reduce U.S. prescription drug prices and align certain Medicaid prices with those charged in other developed countries.
What the Agreement Includes
The manufacturers — Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi — committed to rein in Medicaid drug prices to match levels they charge in other developed nations. The companies also agreed that newly launched medicines will be priced under a so-called "most-favored-nation" (MFN) approach nationwide, covering commercial, cash-pay, Medicare and Medicaid markets.
Who Benefits — And Who Might Still Pay More
How much patients pay in the U.S. depends on several factors, including competition, insurance coverage and negotiated discounts. Most Americans have insurance through employers, the individual market, or public programs such as Medicare and Medicaid, which often shield them from the full list price. Reduced manufacturer prices could ease state Medicaid budgets and help uninsured patients, but even large discounts publicized by the administration could still leave some people owing hundreds of dollars a month for certain high-cost medicines.
“It can’t be bad. I don’t see much downside but it’s hard to judge what the upside is,” said William Padula, a professor of pharmaceutical and health economics at the University of Southern California, noting that Medicaid already receives very favorable rates and the broader effects on research and development remain uncertain.
Other Elements Of The Plan
Administration officials said the drugmakers will sell pharmacy-ready medicines on a TrumpRx platform scheduled to launch in January, allowing consumers to purchase medicines directly from manufacturers. Several companies, including Merck, GSK and Bristol Myers Squibb, agreed to donate active pharmaceutical ingredients (APIs) to a national reserve and to convert and distribute them into finished medicines — such as antibiotics, rescue inhalers and blood thinners — in an emergency.
Bristol Myers Squibb additionally pledged to donate its top-selling blood thinner, Eliquis, to the Medicaid program. Eliquis has been one of the company’s most profitable drugs and is widely used in Medicaid.
Context And Outlook
This announcement follows earlier deals the administration struck with other major manufacturers, including Pfizer, AstraZeneca, EMD Serono, Novo Nordisk and Eli Lilly. Officials say the White House secured concessions from a total of 14 companies after the president threatened 10% tariffs on drug imports to pressure firms to "do the right thing." Analysts caution that it may take years to determine whether the initiative meaningfully increases patient access or affects pharmaceutical research and development.
“It’s clearly influential, but will all this add up to a major effect? Nothing really matters here unless our health gets better as a country,” Padula added.
