Major drugmakers strike pricing deals with Trump to lower U.S. drug costs

Nine of the world’s largest pharmaceutical companies have reached agreements with Donald Trump to voluntarily lower drug prices in the United States, marking a significant step in the administration’s push to link domestic prices to cheaper rates abroad.

The companies include Merck, Bristol Myers Squibb, Amgen, Gilead Sciences, GSK, Sanofi, Genentech, Boehringer Ingelheim, and Novartis.

In exchange for cutting prices, the drugmakers will receive a three-year exemption from Trump’s planned pharmaceutical-specific tariffs, provided they increase investment in U.S. manufacturing.

Among the most notable commitments, Bristol Myers Squibb said it will provide its blockbuster blood thinner Eliquis free of charge to Medicaid patients.

The agreements follow letters sent by Trump to 17 major drugmakers earlier this year, urging them to lower prices under his revived “most favored nation” policy. Trump signed an executive order in May calling for U.S. drug prices to be tied to the lowest prices paid in comparable countries.

“As of today, 14 out of the 17 largest pharmaceutical companies have now agreed to drastically lower drug prices for the American people,” Trump said during remarks at the White House. He described the deals as a major win for patient affordability.

Johnson & Johnson, AbbVie, and Regeneron have not yet signed agreements, though Trump said Johnson & Johnson is expected to do so soon.

While full details of the pricing terms have not been released, the companies agreed to measures including selling certain medicines to Medicaid patients at most-favored-nation prices and listing top drugs on a new direct-to-consumer platform, TrumpRx, set to launch in January.

Several companies also announced expanded direct-to-patient programs. Sanofi said it will offer discounts of nearly 70% on select treatments, while Merck and Amgen outlined similar price cuts for diabetes, cholesterol, migraine, and autoimmune drugs.

U.S. prescription drug prices remain significantly higher than those overseas. A 2024 Rand Corp. study found that U.S. prices are nearly three times higher on average, and more than four times higher for branded medicines, reinforcing the administration’s push for reform.