Trump Secures Price Cuts from Major Drugmakers

Sat Dec 20 2025 02:39:28 GMT+0200 (Eastern European Standard Time)

Nine major pharmaceutical companies agree to lower drug prices in the U.S., aligning their Medicaid prices with those in other developed countries. The deal aims to increase affordability for patients, including those on Medicaid.

In a significant move, President Donald Trump announced on Friday that nine prominent drug manufacturers will lower their prescription drug prices in the U.S. These companies, including Amgen, Merck, and Novartis, will adjust their Medicaid drug prices to match those in other developed nations. This agreement also includes a commitment to implement the 'most-favored-nation' pricing for any new medications. Patients, even those without insurance, are expected to benefit from these reductions, though some still may face high costs for prescriptions. Additionally, TrumpRx, a new platform for purchasing medications directly from manufacturers, is set to launch in January. Experts believe this initiative signifies a push towards health equity in drug pricing.

U.S. President Donald Trump announced Friday that nine drugmakers have agreed to lower the cost of their prescription drugs in the U.S.

Pharmaceutical companies Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi will now rein in Medicaid drug prices to match what they charged in other developed countries.

As part of the deal, new drugs made by those companies will also be charged at the so-called 'most-favored-nation' pricing across the country on any newly launched medications for all, including commercial and cash pay markets as well as Medicare and Medicaid.

Patients in Medicaid already pay a nominal co-payment of a few dollars to fill their prescriptions, but lower prices could help state budgets that fund the programs. However, even with potential discounts, some patients might still face high out-of-pocket costs.

Experts see this agreement as a significant step towards health equity, with Tacoma University’s William Padula noting it could enhance both equity and innovation in the pharmaceutical sector.

The Trump administration is also set to launch TrumpRx, a platform that will enable direct purchases of medications from manufacturers, further enhancing access to cheaper medications.