Trump Secures Voluntary Drug Price Cuts from Nine Major Pharmaceutical Companies
WASHINGTON, D.C. — President Donald Trump announced on Friday that nine of the largest pharmaceutical companies in the United States and Europe have agreed to voluntarily lower prices on a range of medications under a new “Most Favored Nation” program. The initiative, unveiled during a White House event in the Roosevelt Room, is designed to make costly drugs more affordable for millions of Americans, particularly those enrolled in Medicaid, while encouraging substantial investment in domestic drug manufacturing.
The companies involved, including Bristol Myers Squibb, Merck, Amgen, Gilead, GlaxoSmithKline, Sanofi, Roche’s Genentech, Boehringer Ingelheim, and Novartis, have committed to offering discounted prices on treatments for chronic conditions such as Type 2 diabetes, rheumatoid arthritis, multiple sclerosis, asthma, hepatitis B and C, HIV, and certain cancers. In exchange, these companies will avoid tariffs on their products for a three-year grace period provided they collectively invest at least $150 billion in U.S. manufacturing capacity.
“As of today, 14 out of the 17 largest pharmaceutical companies have now agreed to drastically lower drug prices for the American people and the American patients,” Trump said. “This represents the greatest victory for patient affordability in the history of American healthcare, by far, and every single American will benefit.”
Among the notable price reductions are Bristol Myers Squibb’s Eliquis, a widely prescribed blood thinner, which will be offered free to Medicaid programs, and its HIV medication Reyataz, which will drop from $1,449 to $217 for patients purchasing directly through the new TrumpRx platform. Gilead Sciences will reduce the price of its Hepatitis C cure Epclusa from nearly $25,000 to $2,425, while Sanofi plans to offer insulin products at $35 per month’s supply and cut the price of the blood thinner Plavix from $756 to $16.
Merck announced discounts of approximately 70% on three diabetes drugs, including Januvia, which will fall from $330 to $100 for patients buying directly. Amgen will reduce prices on migraine and autoimmune treatments by 60%, and Genentech will cut the cost of its flu medication Xofluza from $168 to $50. Novartis plans to lower its multiple sclerosis drug Mayzent from nearly $10,000 to just over $1,100.
The White House also highlighted that these companies will supply active pharmaceutical ingredients to a Strategic Reserve to reduce reliance on foreign sources and ensure availability during emergencies. The TrumpRx website, expected to launch early next year, will enable consumers to purchase these discounted medications directly.
Despite the optimism from the administration, some experts and industry groups expressed skepticism. Chris Meekins, managing director of health policy research at Raymond James, told CNN that most Americans will still find it cheaper to obtain drugs through their insurance plans, and that the deals may have limited impact on overall profit margins for drugmakers.
The pharmaceutical industry’s trade association, PhRMA, criticized the “most favored nation” pricing approach, arguing it could undermine innovation and limit treatment availability. PhRMA pointed to pharmacy benefit managers as a key driver of price disparities and urged reforms targeting middlemen and hospital markups instead. The group also noted that its members are investing $500 billion in U.S. manufacturing and infrastructure.
President Trump also announced plans to convene health insurers in the coming weeks to push for lower premiums, criticizing soaring costs from providers such as doctors and hospitals. He suggested the federal government might shift subsidies directly to consumers rather than insurers to promote more reasonable healthcare costs.
The new drug pricing agreements build on Trump’s May 2025 executive order aimed at ending “global freeloading,” referencing the fact that prescription drugs in the U.S. cost nearly three times more than in other countries, according to a 2024 RAND Corporation study. Branded drugs, in particular, were found to be more than four times higher in price domestically.
For more information on Medicare and Medicaid programs and drug pricing policies, visit the Centers for Medicare & Medicaid Services and the U.S. Department of Health and Human Services websites.
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