Key Takeaways:
- The Trump administration has announced nine new agreements with major pharmaceutical companies to lower prescription drug prices for Americans.
- The agreements will provide access to the most-favored-nation (MFN) price, which is the lowest price paid by other developed nations, for numerous costly and chronic conditions.
- The agreements will result in billions of dollars in savings for State Medicaid programs and American patients.
- Pharmaceutical companies will invest at least $150 billion in U.S. manufacturing and donate active pharmaceutical ingredients to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR).
- Patients will see significant price reductions on numerous products, including a 58% reduction in the price of Repatha, a cholesterol-lowering drug, and a 93% reduction in the price of Epclusa, a Hepatitis C medication.
Introduction to Lowering Drug Prices
The Trump administration has taken a significant step towards lowering prescription drug prices for American patients. On a recent day, President Donald J. Trump announced nine new agreements with major pharmaceutical companies, including Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi. These agreements aim to reduce prescription drug prices for Americans to the lowest prices paid by other developed nations, known as the most-favored-nation (MFN) price. The agreements will provide access to MFN prices on products that treat numerous costly and chronic conditions, including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease (COPD), hepatitis B and C, human immunodeficiency virus (HIV), and certain cancers, among others.
Agreements and Their Impact
The agreements will have a significant impact on the pharmaceutical industry and American patients. Every State Medicaid program in the country will have access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings. The agreements also ensure that foreign nations can no longer use price controls to free ride on American innovation by guaranteeing MFN prices on all new innovative medicines the nine companies bring to market. Furthermore, the agreements require the nine companies to repatriate increased foreign revenue on existing products that they realize as a result of the President’s strong America First U.S. trade policies for the benefit of American patients. Patients will be able to purchase medicines at a deep discount off the list price when buying directly through TrumpRx, a program that allows patients to purchase prescription drugs at discounted prices.
Delivering Lower Costs
Patients will see massive price reductions on numerous products when purchasing directly through TrumpRx as a result of the agreements. For example, Amgen will reduce the price of its cholesterol-lowering drug Repatha from $573 to $239, a 58% reduction. Bristol Myers Squibb will reduce the price of its HIV medication, Reyataz, from $1,449 to $217, a 85% reduction. Boehringer Ingelheim will reduce the price of its type two diabetes medication, Jentadeuto, from $525 to $55, a 90% reduction. Genentech will reduce the price of its flu medication, Xofluza, from $168 to $50, a 70% reduction. Gilead Sciences will reduce the price of its Hepatitis C medication, Epclusa, from $24,920 to $2,425, a 90% reduction. These price reductions will have a significant impact on American patients who struggle to afford prescription drugs.
Bolstering National Health Security
The pharmaceutical manufacturers involved in the agreements are committing to invest at least $150 billion collectively in U.S. manufacturing in the near term. This investment will help to bolster national health security by reducing reliance on foreign nations for pharmaceuticals. Additionally, several companies are donating active pharmaceutical ingredients for key products to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to ensure the United States has an adequate supply of such products in the event of an emergency. For example, GSK will contribute 98.8kg of albuterol, the active ingredient in a common rescue inhaler for people with asthma. Bristol Myers Squibb will contribute tablets representing 6.5 tons of apixaban, the active ingredient in the drug Eliquis, a blood thinner taken by millions of American patients. Merck will contribute 3.5 tons of ertapenem, an antibacterial medication used to treat complex infections.
Delivering on Promises
President Trump is delivering on promises to ensure American patients no longer pay high prices to subsidize low prices in the rest of the world. On May 12, 2025, President Trump signed an Executive Order titled: "Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients" directing the Administration to take numerous actions to bring American drug prices in line with those paid by similar nations. Since September 30, 2025, President Trump has announced 14 deals with major pharmaceutical manufacturers to bring prices in line with those paid in other developed nations, which will provide substantial price relief on numerous products taken by millions of Americans. The agreements announced today are a significant step towards achieving this goal and will have a lasting impact on the pharmaceutical industry and American patients.