By Don Tomslee

Copyright indiatimes

AP President Trump announces TrumpRx website for discounted prescription drugs with Pfizer deal offering 50-85% price reductions through direct-to-consumer sales platform launching early 2026 for Medicaid patients and all Americans

President Donald Trump announced Tuesday, October 1, the creation of TrumpRx, a federal government-operated website designed to direct Americans to discounted prescription drugs sold directly by pharmaceutical manufacturers. The announcement includes a deal with Pfizer to reduce prices for Medicaid patients and offer medications through the new platform.The TrumpRx website is expected to launch in early 2026, according to a senior administration official. The site will not sell or distribute medications directly but will allow consumers to search for medicines and redirect them to manufacturers’ direct-to-consumer purchasing channels.The federal government will operate the TrumpRx website but will not handle medication sales or distribution. Consumers will use the platform to locate their prescriptions and will be redirected to pharmaceutical companies’ own direct-to-consumer sites for purchases.Also read: Pfizer shares jump 8% on Medicaid deal with Trump”This is a really big announcement,” Trump said from the White House. “This is something that most people said was not doable.”Live EventsA senior administration official stated the administration hopes to launch the TrumpRx website and implement new pricing for Medicaid patients by early 2026. The site will be open to all Americans, not just Medicaid enrollees.The White House fact sheet indicated the price discounts would be calculated from drugs’ list prices before other discounts and rebates are applied.Pfizer deal for discounted prescription drugs on TrumpRxPfizer agreed to sell drugs at reduced prices to Medicaid patients as part of the TrumpRx initiative. The agreement covers “a large majority” of Pfizer’s primary care medicines and specialty brand-name drugs, with discounts averaging 50 per cent and reaching as high as 85 per cent, according to a company spokesperson.Pfizer medications available on TrumpRx include:Duavee (menopause treatment): $30, representing an 85 per cent reductionToviaz (overactive bladder): $42, representing an 85 per cent reductionEucrisa (atopic dermatitis skin ointment): $162, representing an 80 per cent reductionAbrilada (autoimmune treatment): significant discount, specific pricing not disclosedXeljanz (rheumatoid arthritis): 40 per cent discount from $6,000 monthly list price to approximately $3,600Trump stated that all new drugs introduced by Pfizer to the US market will be sold at the lower prices. Pfizer will begin offering Medicaid the reduced prices in early 2026.Additional manufacturers have negotiated deals with the administration, while others are in progress and more companies are waiting to start discussions, according to the senior administration official. Trump suggested more deals with other drugmakers would follow but did not name specific companies.Most favored nation pricing model explainedThe deal is part of Trump’s effort to implement “most favored nation” pricing for prescription drugs, meaning the US pays no more than the lowest prices charged in other wealthy countries.In May, Trump signed an executive order outlining the initiative, which directed federal officials to pursue a plan tying the amount the government pays for certain drugs to prices paid overseas. In July, Trump sent letters to 17 major pharmaceutical company CEOs demanding compliance with the pricing model.The administration clarified Tuesday that “most favored nation” pricing is based on net price, which people pay for medications after discounts and rebates are applied. The net price is compared with the lowest price for the medication in wealthy countries including Canada, France, Germany, Italy, Japan, the United Kingdom, Switzerland and Denmark. That becomes the starting point for the “most favored nation” price in the US.Also read: ‘Historic Deal…’: Pfizer CEO praises on Trump admin after signing deal on prescription drug pricesPfizer and administration officials arrived at the lower prices by comparing what other nations pay to net pricing, which reflects costs patients in the US and insurers pay after rebates and discounts.”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.”Trump acknowledged his actions may result in prices rising in other countries while coming down in America, calling that “fair.”Pfizer tariff exemption and manufacturing investmentPfizer will receive a three-year grace period on Trump’s planned tariffs on pharmaceuticals made abroad, which are expected to take effect Wednesday. The company announced a $70 billion investment in research and development and domestic manufacturing in coming years.The announcement came one day before Trump’s deadline for a 100 per cent tariff on brand-name pharmaceutical imports unless drugmakers are building manufacturing plants in the US. Imports from the European Union will face a 15 per cent levy per a trade agreement signed earlier this year.Expert analysis on TrumpRx effectivenessIndustry experts questioned whether TrumpRx will meaningfully reduce prescription drug costs for most Americans.The deal only applies “to one company and one program,” said Drew Altman, president and CEO of KFF, a nonpartisan health policy research group.Stacie Dusetzina, a health policy professor at Vanderbilt University, said direct-to-consumer sales “are not going to help the average person at all with achieving lower costs.”Typically, direct-to-consumer sales require patients to pay out of pocket rather than use insurance. Officials did not clarify whether people would be able to use insurance on TrumpRx.Also read: PFE stock rises 5.3% today: Pfizer seals Trump drug price deal with $70 billion U.S. investment and $7.3 b”Most Americans buy drugs through their insurance plan, so that would mainly help the uninsured,” Altman said.”These announcements serve as good PR for the drug companies but are more of a gimmick that only help a very small number of people,” Dusetzina said. “Instead, the average American is likely to be harmed by the broader policies pushed by the Administration, including a 100 per cent tariff on drugs. This will raise prices for consumers, not lower them.”Chris Meekins, managing director of health policy research at Raymond James, wrote that the “new Trump drug website is likely irrelevant as few will pay out of pocket” unless insurance policies change.Most medicines the White House promoted do not appear to be used frequently in the US, Dusetzina said. Xeljanz appears to be an outlier but likely faces generic competition beginning next year, meaning lower-priced copies could soon be available.Regarding Xeljanz pricing, Dusetzina questioned the TrumpRx discount. With a list price exceeding $6,000 monthly and a 40 per cent discount, patients could pay about $3,600 monthly. “How is this a reasonable cash price?” Dusetzina said. “It really isn’t.”Lawrence Gostin, director of the O’Neill Institute for National and Global Health Law at Georgetown University, questioned why the administration focused on “most favored nation” pricing rather than Medicare drug pricing negotiations passed into law.”Why would the president unilaterally act when he already has an effective tool to lower prices that is fully authorized by Congress?” Gostin asked.Direct-to-consumer drug sales industry trendDirect-to-consumer medication sales are not common among drug manufacturers. Some companies have recently launched websites selling drugs directly to consumers.Also read: Trump to announce Pfizer price cuts as White House presses drugmakersNovo Nordisk announced last month that US patients can purchase a month’s supply of Ozempic, the diabetes drug, for $499 for those paying without insurance. The company makes Ozempic available at its NovoCare Pharmacy, which ships medications directly to cash-paying consumers. Ozempic carries a list price of just under $1,000 per month.On Monday, the Pharmaceutical Research and Manufacturers of America (PhRMA) launched AmericasMedicines.com, a website connecting patients with drug companies’ direct-purchase programs, noting Trump’s call for such offerings.”Some manufacturers are responding by offering new direct purchase programs that are more convenient and can save patients time and money — no hidden markups or fees and transparent pricing for patients and businesses,” PhRMA said.Prescription drug pricing context in the United StatesPrescription drug prices are higher in the US than in other wealthy countries, including for generic drugs. Drug spending accounts for 10 per cent of all health care spending in the US, Altman said.Prices are nearly three times as high in the US as in comparable countries, according to a Health and Human Services Department report released last year.A 2022 KFF survey found three in four US adults say medication costs are unaffordable.The announcement comes as the Trump administration has made significant cuts to Medicaid.Pharmaceutical industry response to most favored nation pricingThe drug industry has warned that “most favored nation” directives could have serious ramifications.”Importing foreign price controls would undermine American leadership, hurting patients and workers,” Alex Schriver, senior vice president at PhRMA, said in a July statement.Some industry experts predict drugmakers will raise prices in other countries rather than lower them in the US. Eli Lilly announced in August it would increase the price of weight-loss drug Mounjaro in the United Kingdom to reduce its cost in America. Bristol Myers Squibb said earlier this month it would sell schizophrenia medication Cobenfy for the same list price in the United Kingdom as in the US.Also read: Pfizer gets three-year reprieve from Trump pharma tariffs”If this is all that President Trump does on drug pricing, it is likely a win for the pharmaceutical industry,” Meekins said.Trump administration drug pricing historyTrump attempted to institute “most favored nation” pricing during his first term with an executive order to lower Medicare drug prices. The effort was blocked by a federal judge.Trump has made reducing prescription drug costs a central goal since his first presidential campaign. He recently promised to slash prices by 1,500 per cent, which experts say is mathematically impossible.The president does not have legal authority to require drug companies to set products at “most favored nation” prices.Pfizer is among the largest drugmakers in the US, producing drugs including blood thinner Eliquis, cancer drug Ibrance and the COVID vaccine. Eliquis was included in the first round of Medicare drug pricing negotiations during the Biden administration, with negotiated prices set to take effect in 2026.Add as a Reliable and Trusted News Source Add Now!
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