President Donald Trump on Tuesday announced a sweeping initiative to lower drug costs in the United States.
The plan includes a direct-to-consumer website called “TrumpRx” and a landmark agreement with Pfizer to sell medicines at reduced prices.
“The United States is done subsidizing the health care of the rest of the world,” Trump said at a news conference. “By taking this bold step, we’re ending the era of global price gouging at the expense of American families.”
Pfizer became the first drugmaker to agree to all the demands laid out in Trump’s July letter to pharmaceutical CEOs. The president indicated more companies could soon follow.
Pfizer agreed to provide its drugs to Medicaid at “Most Favored Nation” levels.
That means matching the lowest price offered in other wealthy countries, including Canada, France, Germany, Italy, Japan, the United Kingdom, Switzerland, and Denmark.
The company will also sell many of its primary care and specialty medicines at about 50% savings on TrumpRx, set to launch in early 2026.
The administration clarified that MFN pricing will be based on net prices, which factor in discounts and rebates. Officials said this will set a new baseline for fairer pricing in the U.S.
Pfizer will start offering Medicaid the MFN prices in 2026. The company also pledged to expand U.S. manufacturing and repatriate additional revenue generated abroad under Trump’s trade policies.
In return, it secured a three-year reprieve on certain tariffs for pharmaceutical imports.
A White House fact sheet highlighted direct-purchase discounts on specific drugs.
Eucrisa, a treatment for atopic dermatitis, will be offered at an 80% discount. Xeljanz, used for rheumatoid arthritis and other conditions, will be reduced by 40%. Zavzpret, a migraine drug, will sell at half price.
Direct-to-consumer approach
The TrumpRx site will not distribute drugs itself. Instead, it will redirect consumers to manufacturers’ direct sales channels. A senior administration official said the platform will function as a search tool for discounted medicines.
Several drugmakers already use similar programs. Novo Nordisk recently began offering Ozempic, a diabetes drug with a list price near $1,000 a month, for $499 to U.S. patients who pay out of pocket.
The company sells the drug directly through its NovoCare Pharmacy.
Industry group PhRMA also introduced AmericasMedicines.com this week. The website connects patients to direct-purchase programs run by pharmaceutical companies.
“Some manufacturers are responding by offering new direct purchase programs that are more convenient and can save patients time and money,” PhRMA said.
Industry concerns remain
Despite Trump’s push, experts question how much consumers will save. Insurance coverage, pharmacy benefit managers, and middlemen all play a role in final costs.
Medicaid enrollees already pay little or nothing for prescriptions, so MFN pricing may save the government money more than patients.
Trump acknowledged the changes could raise prices abroad while lowering them at home. “That’s fair,” he said, adding that U.S. families should no longer bear the burden of higher prices while other nations pay less.
According to federal data, Americans currently pay nearly three times more for brand-name drugs than patients in comparable countries.
The president revived his MFN order in May after failing to implement it in his first term. He warned drugmakers to comply or face consequences, and Tuesday’s deal with Pfizer marked his first breakthrough.