Categories: Health

Trump, Pfizer announces an agreement to reduce the prices of American drugs

US President Donald Trump announces an agreement with Pfizer to reduce Medicaid drug prices in the White House Oval Office on September 30, 2025 in Washington, DC.

Win McNamee | Getty images

President Donald Trump announced on Tuesday an agreement with Pfizer To voluntarily sell his drugs for less, because his administration pushes to connect the prices of medicines in the United States at cheaper prices abroad.

Pfizer has agreed to take measures to reduce the prices of American drugs, in particular the sale of its existing drugs to Medicaid patients at the lowest price offered in other developed countries, or what Trump calls for the most favored price, according to the president. Pfizer will also guarantee the same “most favored” price on its new drugs for Medicare, Medicaid and commercial payers.

As part of the agreement, Pfizer has also accepted a three -year grace period during which the company’s products will not face specific prices for pharmaceutics – as long as the drug manufacturer invests more in American manufacturing. The company plans to invest $ 70 billion to reshape the manufacturing and research facilities for interior medicines.

Pfizer’s shares increased by more than 4% on Tuesday after the announcement.

“Pfizer has agreed to provide some of the most popular current drugs to our consumers at high prices between 50% and even 100%,” said Trump, adding that these drugs will be available to direct purchase to an online discount on a website that administration calls Trumprx.gov.

Trump said he was working with other drug manufacturers to get similar agreements in next week, adding that Pfizer is the first.

“If we do not conclude an agreement, we will priced them,” he said about the drugs of other companies.

The White House confirmed with Eamon Javers of CNBC that Eli Lilly was in negotiations with Trump for the next medication pricing agreement, without providing more details on the measurement in discussions.

The agreement comes as Pfizer and 16 other drug manufacturers face Trump’s deadline on Monday to take measures to reduce the prices of drugs, as indicated in the president’s letters. Trump in May has signed an executive decree released a controversial plan, the policy of the “most favored nation”, which aims to link the prices of certain drugs in the United States to the lowest abroad.

During the press conference, the CEO of Pfizer, Albert Bourla, told that the company satisfied the four requests that Trump had described in his letter. Among the other stages consists in pursuing more strict price negotiations abroad and adopting models that sell its drugs directly to consumers or businesses.

“The big winner will clearly be American patients, there is no doubt,” said Bourla. “They will see a significant impact on their ability to buy medication.” But he said that “American innovation and the American economy” will also be “winners” with the agreement.

Reduced Pfizer drugs

Pfizer said that it will offer a significant share of its primary care treatments and certain specialized brand drugs at discounts of 50% on average and up to 85%, according to a press release from the company.

In a separate declaration on Tuesday, Pfizer said that more than 100 million patients were affected by the diseases that these drugs treat, such as migraines, rheumatoid arthritis, menopause and atopic dermatitis.

The company has provided examples of drugs at reduced prices under Trumprx.gov. Duavee, treatment for certain symptoms of menopause, will be available for as little as $ 30 on the site, which represents an 85% discount compared to its current price.

Patients will also be able to pay as low as $ 162 – a reduction of 80% at the current price – for the eucrisa prescription ointment, which is used to treat light to moderate eczema. Tovias, a drug for hyperactive bladder, will also be available on Trumprx.gov for as little as $ 42, which represents an 85% discount compared to the current price.

Pfizer said it also planned to offer products such as Ablada for autoimmune diseases to a 60%discount, Xeljanz for rheumatoid arthritis to a 40%discount and the 50%zazvprers migraine medication.

These drugs do not seem to be significant income drivers for Pfizer. Reports on the quarterly and former company’s profits include only specific income for the product for Xeljanz, which generated $ 349 million in world sales in 2024. Medicines fell 29% compared to 2023, mainly due to the drop in demand in the world as well as net net prices in the United States

The agreement occurs while manufacturers of drugs are preparing for Trump’s planned prices on imported pharmaceutical products in the country. Trump said Thursday in a social article of truth that the United States will impose a 100% price on “any brand pharmaceutical or patented” entering the country from October 1.

The measure will not apply to companies that build drug manufacturing factories in the United States, Trump said. He added that the exemption covers the projects where construction has started, including the sites that have struck the land or under construction.

In a note on Tuesday, the BMO capital market analyst, Evan Seigerman, said that the agreement was positive for Pfizer’s actions and the broader pharmaceutical sector, because he “adds the certainly of potentials and policies of potentially far from pharmaceutical prices”.

“Today’s agreement seems to have a way for other pharmaceutical players to follow, allowing Trump’s” victory “pricing concessions without more punitive implementation of the most favored policy or prices of the nation, he added.

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Sophia Martinez

Sophia Martinez – Health & Wellness Editor Focuses on health, nutrition, and medical research with reliable sources.

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