President Donald Trump and nine major pharmaceutical companies announced agreements to lower the cost of medications for cash payers and the government’s Medicaid program on Friday, bringing U.S. costs into line with those of other wealthy countries.
Bristol Myers Squibb Co. (NYSE:BMY), Gilead Sciences Inc. (NASDAQ:GILD), Merck & Co. Inc. (NYSE:MRK), Genentech, Novartis AG (NYSE:NVS), Amgen Inc. (NASDAQ:AMGN), Boehringer Ingelheim, Sanofi SA (NASDAQ:SNY) and GSK plc (NYSE:GSK) struck deals with the administration, Trump said at a White House event.
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Deal Structure And Tariff Exemptions
Drugmakers will cut prices on most drugs sold to Medicaid to most-favored-nation pricing, matching the lowest prices anywhere in the world, Trump said.
Companies agreed to list drugs on TrumpRx.gov, a government website for buying discounted prescription drugs directly from manufacturers with massive discounts for cash payers, and launch all new drugs at prices no higher than those in other wealthy countries.
The agreements come after Trump had previously imposed tariffs on foreign-made drugs to pressure companies into lowering prices, and in exchange for the new commitments, the firms will receive three-year tariff exemptions.
Merck said it will sell its diabetes drugs Januvia and Janumet at 70% off list prices directly to consumers, while Bristol Myers Squibb will provide its blood thinner Eliquis free to Medicaid starting from Jan. 1, 2026, and offer selected medicines at roughly 80% off list prices for cash-paying patients.
$150 Billion Investment Pledge
The companies have pledged more than $150 billion in U.S. R&D and manufacturing investments, with Merck committing over $70 billion to expand domestic production and foster innovation.
Five companies previously struck deals with the administration:
| Company (Ticker) | Drugs Offered |
|---|---|
| Pfizer (NYSE:PFE) | Eucrisa, Xeljanz, Zavzpret |
| Eli Lilly (NYSE:LLY) | Zepbound |
| Novo Nordisk (NYSE:NVO) | Wegovy |
| AstraZeneca (NASDAQ:AZN) | Airsupra, Farxiga |
| EMD Serono (Merck KGaA unit) | GONAL-F |
Trump said the remaining three companies, Regeneron Pharmaceuticals Inc. (NASDAQ:REGN), Johnson & Johnson (NYSE:JNJ), and AbbVie Inc. (NYSE:ABBV), are expected to announce deals next week.
The billionaire entrepreneur and investor, Mark Cuban, gave TrumpRx.gov a “B” grade, saying the program has potential but won’t earn an “A” unless it forces pharmacy benefit managers to change their behavior.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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