Home » Pfizer Agrees to Lower Prescription Drug Costs for Medicaid in Deal with Trump

Pfizer Agrees to Lower Prescription Drug Costs for Medicaid in Deal with Trump

by Richard A Reagan

President Donald Trump announced Tuesday that Pfizer will significantly lower the cost of its prescription medications for Medicaid patients. The deal marks a major victory for his administration’s effort to reduce drug prices through the “Most Favored Nation” policy.

The agreement comes after months of negotiations and mounting pressure from the White House. Trump had given major pharmaceutical companies a Sept. 29 deadline to adopt pricing structures that align with what they charge in other developed nations.

Under the deal, Pfizer will offer all of its prescription drugs to Medicaid at the lowest price it sells those medications abroad. Trump called it a landmark step in his campaign to make medication more affordable for Americans.

“Pfizer is committing to offer all of their prescription medications to Medicaid. It will be at the most favored nation’s prices. It’s going to have a huge impact on bringing Medicaid costs down like nothing else,” Trump said during a press briefing in the Oval Office.

Pfizer CEO Albert Bourla joined Trump and senior health officials for the announcement. He said the company is meeting all four points outlined in the president’s executive order, including price reductions across its portfolio. Bourla also said new drugs will have the same list price in the U.S. as in other advanced economies.

“The big winner of this deal, clearly, will be the American patient,” Bourla said. “They are the ones that will see significant impact in their ability to buy medicines.” He added that the deal “reverses an unfair situation” in which Americans pay a disproportionate share of the global cost of medical innovation.

Administration officials said Pfizer’s price cuts will begin in early 2026. They expect the changes to have ripple effects throughout the market, influencing prices beyond Medicaid.

According to Medicare Director Chris Klomp, several Pfizer drugs, including treatments for osteoporosis, migraines, rheumatoid arthritis, and dermatitis, will see price reductions ranging from 40% to 85%.

Trump said the agreement is the largest drug price reduction in U.S. history. He said it will reshape the pharmaceutical market. “This is the biggest price reduction, times, maybe 10 times 15 times, than has ever been given before, and it’s gonna have a huge impact,” he said.

The deal will also extend beyond Medicaid. Some of Pfizer’s most popular medications will be available to all consumers at heavily discounted prices through a government-run online pharmacy. The website, called TrumpRx, is expected to launch early next year.

The deal was influenced by Trump’s threats to impose heavy tariffs on pharmaceutical imports under Section 232, a national security provision. Bourla said the administration had granted Pfizer a three-year grace period from such tariffs.

Trump has also pledged a 100% tariff on all drugs produced overseas. That move prompted Pfizer to commit to relocating its manufacturing operations to the United States. “We took away the advantage by the fact that we have tariffs,” Trump said. “Nobody wants to play that game.”

The White House also announced that companies meeting the Most Favored Nation framework would receive expedited drug approvals from the Food and Drug Administration. “If you equalize your prices, then we’re going to put your future applications at the front of the line,” said FDA Commissioner Dr. Marty Makary.

The agreement fulfills a decades-long bipartisan goal of reducing prescription drug costs. Health and Human Services Secretary Robert F. Kennedy Jr. said the achievement has broad support. “Democrats have wanted this for 20 years. Republicans have wanted this for 20 years,” he said.

Officials expect additional pharmaceutical companies to sign similar agreements in the coming days. Trump said he anticipates announcing more deals as soon as next week. “We’re working with other major pharmaceutical companies to secure similar agreements,” he said. “There has never been anything like this in the history of medicine, and it’s an honor.”

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