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By Peter Aitken
Politics Weekend Editor
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President Donald Trump on Friday afternoon announced that nine major pharmaceutical companies have agreed to join his "most favored nation" pricing policy, bringing down the price of prescription drugs for Medicare and Medicaid recipients.
The deal ensures that drugs will be sold at reduced prices, with many sold at the same price that they're sold at overseas, which will be purchased through the TrumpRx platform due 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, adding that other countries had agreed to making drug prices fairer as a result of the threat of tariffs.
Read More on Health
Why It Matters
Trump's promise to lower health care costs during his second term has had mixed results. While major pharmaceutical companies have pledged to add their names to so-called TrumpRx, the administration has also grappled with the pending end of Obamacare subsidies and a lack of agreement from Republicans on how to keep premiums low for the millions of Americans who rely on Medicare and Medicaid.
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What To Know
The new agreement will reduce the cost of medications used to treat a variety of chronic and costly conditions, the White House said, including type-2 diabetes, multiple sclerosis, asthma and HIV. State Medicaid programs will be able to access the medications at the prices agreed upon.
Trump said that the deals will mean other countries can no longer dictate pricing in the U.S., after some medications were being sold in the U.S. for between 10 and 12 times the prices that people in Germany, France and Spain were paying.
The White House said in its announcement that the companies involved in Friday's announcement pledged to invest at least $150 billion in U.S. manufacturing in the near term. That, in turn, will increase national health security, the White House said.
List Of Drug Companies Added To 'Most Favored Nation' Pricing
The deal now includes Merck, GlaxoSmithKline, Sanofi, Genentech, Bristol Myers Squibb, Amgen, Novartis, Gilead and Boehringer Ingelheim, helping reduce the price of drugs for Americans from the biggest companies in the business.
If patients buy the following medications directly through Trump RX, their costs will reduce.
- Amgen will reduce the price of its cholesterol-lowering drug Repatha from $573 to $239
- Bristol Myers Squibb will reduce the price of its HIV medication, Reyataz, from $1,449 to $217
- Boehringer Ingelheim will reduce the price of its type two diabetes medication, Jentadeuto, from $525 to $55
- Genentech will reduce the price of its flu medication, Xofluza, from $168 to $50
- Gilead Sciences will reduce the price of its Hepatitis C medication, Epclusa, from $24,920 to $2,425
- GSK will reduce the prices of its inhaler portfolio. Prices for the popular asthma inhaler Advair Diskus 500/50 will fall from $265 to $89
- Merck will reduce the price of its diabetes medication, Januvia, from $330 to $100
- Novartis will reduce the price of its Multiple Sclerosis medication, Mayzent, from $9,987 to $1,137
- Sanofi will reduce the price of its prescription blood thinner, Plavix, from $756 to $16
- Sanofi will list its insulin products at TrumpRx at $35 per month’s supply
What Is TrumpRX?
TrumpRX was announced in September. The idea is that consumers will be able to directly purchase their medication, rather than having to go through their insurance.
Paying out of pocket for medication may not necessarily be the cheaper option for all patients, depending on what their insurance covers, but the idea follows a similar thought process the president has had on health care overall—that he would like Americans to have more direct purchasing power over the care they receive.
The program has been touted as real action on the costs of drugs, after the Biden administration tried to negotiate with pharmaceutical companies on the same issue.
Eliquis To Be Provided Through Medicare With Cost: What We Know
Additionally, Bristol Myers Squibb (BMS) and Pfizer committed to provide their blood thinner, Eliquis, for free to Medicare patients.
The medication is used by millions of Americans, with BMS saying it is the most widely-prescribed blood thinner on the market.
Eliquis will be available to Medicaid patients, for free, beginning January 1, 2026.
What People Are Saying
Robert M. Davis, chairman and chief executive officer at Merck, in a press release Friday: “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, on 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."
GSK CEO Emma Walmsley, 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
After managing to sway major pharmaceutical companies, Trump promised Friday to enter discussions with insurance companies over lowering their costs.
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