- Major U.S. and European drug makers agree to cut medication prices under Trump.
- Pharma companies commit to lower costs and provide top drugs at reduced rates.
- Firms to offer competitive pricing, direct-to-consumer options, and use the TrumpRx platform.
Multiple major drug manufacturers from the U.S. and Europe entered agreements with President Donald Trump to willingly reduce the prices of their medications, as his administration seeks to align domestic drug costs with lower prices available overseas.
This encompasses Merck, Bristol Myers Squibb, Amgen, Gilead, GSK, Sanofi, Roche’s Genentech, privately-owned Boehringer Ingelheim, and Novartis. In return, the firms consented to a three-year reprieve during which their goods will not encounter the pharmaceutical-specific tariffs proposed by Trump - provided the manufacturers continue to invest in U.S. production.
One of the most significant commitments is that Bristol Myers Squibb will provide Eliquis, its leading blood thinner and most prescribed product, at no cost to Medicaid. The firms constitute most of the 17 pharmaceutical companies Trump contacted in July, urging them to reduce prices as part of his “most favored nation” policy. In May, Trump issued an executive order to reinstate that policy, directing price hikes to occur outside the U.S. and to “end global freeloading.”
“As of today, 14 out of the 17 largest pharmaceutical companies ... have now agreed to drastically lower drug prices for … the American people and the American patients,” Trump said. “This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit.”
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The nine pharmaceutical companies consented to implement actions aimed at lowering drug costs in the U.S., which involve providing their current therapies to Medicaid recipients at the lowest “most favored nation” rates, and ensuring that pricing for new drugs is competitive. Trump stated that the pharmaceutical companies consented to feature their top-selling medications on his forthcoming direct-to-consumer site, TrumpRx, set to launch in January.
Several companies also introduced new or enhanced existing direct-to-consumer options for specific medications. Gilead announced in a statement that it will initiate a program allowing patients to obtain its hepatitis C therapy and cure, Epclusa, at a reduced price.
The United States is the most significant market for numerous pharmaceutical companies, irrespective of their country of origin. Although European pharma companies operate across the Atlantic, they have substantial exposure to the U.S. market, as half of the 10 largest firms in the region earn most of their revenue from the U.S.