Trump Inks New Deals to Slash Prescription Drug Prices for Millions

President Donald Trump will announce new agreements with leading pharmaceutical companies today. The goal is to lower prescription drug prices in the United States. The announcement is scheduled for 1 p.m. ET at the White House.

Major firms including AbbVie, Bristol Myers Squibb, and Merck are involved. This continues a direct push by the administration to reduce costs for American patients. According to Reuters, several other global drugmakers are also part of the new deals.

The Push for “Most-Favored-Nation” Pricing

This effort stems from letters Trump sent to drug company leaders in July. He directed them to offer “most-favored-nation” prices to the Medicaid program. This means the U.S. would pay prices similar to those in other wealthy nations.

The policy specifically targets the large disparity in drug costs between countries. Other nations with government-run health systems routinely negotiate lower prices. The U.S. often pays significantly more for the same medications.

Expanding on Earlier Agreements

Today’s expected announcement expands on earlier progress. Five companies had already reached similar agreements with the administration. Those companies are Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono.

The latest deals would bring more major players into the fold. Swiss-based Novartis and Roche are also reportedly participating, according to Bloomberg News. Bringing these companies onboard significantly widens the policy’s impact on the market.

The remaining companies from the original list of 17 are still in discussions. Industry response has been mixed, with some expressing support for the goal. Roche, for instance, stated support for reducing drug prices but urged other nations to better reward innovation.

A quick knowledge drop for you

What is “most-favored-nation” pricing for drugs?

It is a policy where the U.S. government seeks to pay no more for prescription drugs than the lowest price paid by other comparable wealthy nations. The aim is to align U.S. costs with international prices.

Which drug companies are involved in the new deals?

Companies expected to be part of the new announcement include AbbVie, Bristol Myers Squibb, Gilead Sciences, Merck, Novartis, and Roche. This is based on reporting from Reuters and Bloomberg.

How will this lower prices for Americans?

The deals primarily target prices within the government’s Medicaid program for low-income individuals. Lower government payment rates can influence broader market prices and reduce taxpayer costs.

Have any companies agreed to this before?

Yes. Prior agreements were reached with Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono. The new deals would add several more major pharmaceutical firms to that list.

Why are U.S. prescription drug prices higher?

The U.S. system has historically allowed manufacturers to set prices, while other countries negotiate directly. This has resulted in Americans often paying the highest prices in the world for identical medications.

Today’s move marks a significant step in the ongoing effort to tackle high prescription drug prices. By securing agreements from more major manufacturers, the policy’s reach grows wider. The ultimate impact on consumer costs and the pharmaceutical market will be closely watched in the coming months.