Washington: The Trump administration has announced a landmark agreement with pharmaceutical giant Pfizer that will allow patients to purchase prescription drugs at heavily discounted prices through a new federal government website.
The deal will see prices for certain medicines cut by as much as 85 percent on the upcoming direct-to-consumer platform, TrumpRx, which is expected to launch in early 2026. The White House described the move as a historic breakthrough in reducing healthcare costs for Americans.
President Trump Delivers an Announcement, Sep. 30, 2025 https://t.co/hELNDHh9q2
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Agreement details
As part of the deal, Pfizer will also lower prescription drug prices for the state-run Medicaid programme, enabling the company to avoid tariffs imposed by the administration. President Trump announced that branded or patented drug imports would be subject to a 100 percent levy beginning October 1 unless companies agreed to reduce costs.
Pfizer is the first pharmaceutical firm to comply after Trump issued letters to 17 major drug makers this summer, demanding lower prices within 60 days. More agreements are expected in the coming weeks.
During the press conference, Trump emphasised his administration’s policy of aligning US drug prices with the lower costs paid abroad.
Trump stated that, “Pfizer is committing to offer all of their prescription medications to Medicaid at the most-favoured nations prices. It’s going to have a huge impact on bringing Medicaid costs down.”
Industry response
Pfizer confirmed that most of its primary care drugs will be available on TrumpRx, though it did not disclose specific products. The company also pledged an additional $70 billion investment in US manufacturing, research, and development.
Pfizer CEO Albert Bourla said the agreement provides certainty and stability on two critical fronts, tariffs and pricing. Following the announcement, Pfizer’s shares jumped nearly 7 percent.
Other pharmaceutical companies are weighing their options, with some indicating they may adjust prices globally.
Questions remain
While the White House hailed the deal as a victory for American consumers, healthcare experts cautioned that the real impact of TrumpRx remains uncertain. Insurance companies, pharmacy benefit managers, and other intermediaries continue to play a significant role in determining out-of-pocket drug costs.
For now, the agreement marks one of the most high-profile concessions by the pharmaceutical industry in response to Trump’s aggressive tariff threats, setting the stage for further negotiations between Washington and Big Pharma.
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