President Donald Trump has announced landmark agreements with nine major pharmaceutical companies aimed at significantly reducing prescription drug prices for government programs and consumers paying out-of-pocket. The deals, unveiled at a White House press conference, seek to align U.S. drug costs with those in other developed nations, a long-standing objective of the administration.

Participating companies, including Bristol Myers Squibb, Gilead Sciences, Merck, and Genentech, have committed to lowering prices for the Medicaid program, which serves low-income individuals. Senior administration officials described the agreements as promising “massive savings” on widely used medications, though specific figures were not immediately disclosed.

These agreements also extend to direct-to-consumer prices, with plans to launch select drugs through a new “TrumpRx” website at prices comparable to those in other wealthy countries. This initiative aims to address the disparity where U.S. patients often pay considerably more for prescriptions than their international counterparts.

Merck, for instance, will offer its diabetes medications Januvia and Janumet XR to U.S. consumers at approximately 70% off their list prices, particularly as these drugs face impending generic competition. Amgen also pledged to offer its migraine drug Aimovig and rheumatoid arthritis treatment Amjevita for $299 per month, a substantial reduction from current U.S. prices.

In exchange for these price concessions and commitments to increase U.S.-based manufacturing and research and development, pharmaceutical companies may receive a three-year exemption from potential tariffs. The administration emphasized that these deals represent a shift away from the U.S. subsidizing global drug costs.

Further commitments include the adoption of “most-favored-nation” pricing for all new drug launches across commercial, government, and cash-pay markets, including Medicare. Some companies have also agreed to remit a portion of their foreign sales revenue to the U.S. to help offset costs, and several will donate drug ingredients to the U.S. strategic reserve.

While the full details of each individual agreement are still emerging, the collective impact is anticipated to lead to substantial cost reductions for American patients and taxpayers. The administration views these accords as a significant step towards achieving more equitable drug pricing on a global scale.

This initiative builds upon previous efforts, including letters sent to drugmakers urging them to adopt similar pricing strategies. Five companies had previously reached agreements with the administration, and the latest announcement brings the total number of participating firms to fourteen, with three companies yet to finalize their deals.

Analysts note that Medicaid already secures significant discounts, often exceeding 80%. However, the broader application of these pricing strategies across various market segments is expected to yield further benefits. The pharmaceutical industry’s response, initially marked by investor caution regarding price controls, appears to have somewhat eased with the specifics of these recent deals.

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Keywords: drug prices, Trump, pharmaceutical companies, Medicaid, prescription drugs, healthcare costs, most favored nation pricing, TrumpRx