Summary
The Trump administration has reached a deal with Pfizer, a major U.S. drug company, to lower the prices of its medications for the Medicaid program, based on prices in other wealthy countries. Pfizer will also offer discounts through a new online platform called TrumpRx and plans to invest $70 billion in U.S.-based manufacturing projects. Lower drug prices from this deal are expected to be seen by consumers in 2026.
Key Facts
- The deal involves Pfizer reducing medication costs for the U.S. Medicaid program.
- Pfizer will sell drugs to Medicaid patients at the lowest price available in developed countries.
- New U.S. drugs by Pfizer will be priced the same as in other high-income countries.
- Pfizer will offer discounts averaging 50% through TrumpRx, an online drug purchasing platform.
- The price reductions are expected to take effect in 2026.
- Pfizer plans to invest $70 billion in U.S. domestic manufacturing and infrastructure.
- Trump previously signed an executive order to push drug companies to lower prices or face government price caps.
- Trump announced a potential tariff on pharmaceutical imports unless drug companies increase U.S. production.
