Nine Pharma Companies Reach Deal with Trump to Cut Drug Prices

US President Donald Trump announced that nine major pharmaceutical companies have agreed to slash prices on many of their prescription medicines, particularly for low-income patients and uninsured Americans. 

The agreements are part of the Trump administration’s “most-favored-nation” (MFN) plan, which aims to “align US prices more closely with those paid in other wealthy nations,” according to the White House.

The companies, including Merck, Bristol Myers Squibb, Gilead Sciences, Novartis, Amgen, Sanofi, GlaxoSmithKline (GSK), Roche’s Genentech and Boehringer Ingelheim, committed to significant price reductions on selected medications for patients in the federal Medicaid program and those paying out-of-pocket. 

In a statement, the White House said the agreements reduce prices on drugs 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.

In many cases, list prices would fall by up to 70% on key drugs when purchased through the newly announced TrumpRx.gov platform, a direct-to-consumer portal set to launch early next year. 

Related: Eli Lilly and Novo Nordisk Reach Most-Favored-Nation Drug Pricing Deals with Trump Administration to Lower Costs of Obesity Drugs

“The agreements will provide every State Medicaid program in the country access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings and continuing President Trump’s historic efforts to strengthen the program for the most vulnerable,” the statement explains.

“The agreements ensure 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.”

Among the highlighted concessions, Merck will offer diabetes drugs like Januvia, Janumet and Janumet XR at discounts up to 70%. 

In a statement, Merck said it plans to provide the diabetes meds through a direct-to-patient program at the new, affordable prices. The company said it also plans to include its experimental oral LDL cholesterol-lowering PCSK9 drug enlicitide in the future, pending FDA approval. 

Through the TrumpRx platform, Januvia’s price will go from $330 to $100. 

Bristol Myers Squibb will provide its widely used anticoagulant Eliquis free to Medicaid patients. It also said it plans to “donate more than seven tons of Eliquis active pharmaceutical ingredient (API) to ensure American supply chain resilience.” As an older medication, Eliquis will be subject to a significant Medicare price reduction as part of the Inflation Reduction Act.

Gilead will sharply reduce prices on its hepatitis C treatment Epclusa, from $24,920 to $2,425 for patients who purchase it directly through TrumpRx.

Novartis will lower the price of its multiple sclerosis drug, Mayzent, from $9,987 to $1,137 for patients purchasing directly through TrumpRx.

Amgen and GSK committed deep discounts on treatments for arthritis, migraines and respiratory conditions. 

GSK will lower the prices of its inhaler portfolio, including popular asthma inhaler Advair Diskus 500/50, which will drop from $265 to $89 for patients who buy it through TrumpRx.

Sanofi said it will slash prices by an average of 61% for select treatments for diabetes, cardiovascular and neurological conditions and cancer, bringing prices to levels comparable to those in other high-income countries. Some of the French drugmaker’s products will also be available through TrumpRx.gov.

In return, companies will receive a three-year exemption from new pharmaceutical-specific tariffs that the administration had threatened as leverage to secure price cuts, a key bargaining chip in the negotiations. 

They have also pledged over $150 billion in new US investment covering research, manufacturing and infrastructure. 

Sanofi said it remains committed to its $20 billion planned investment that includes upgrades to its existing manufacturing facilities, building new supply capacity and expanding manufacturing partnerships. 

Trump framed the agreements as a historic victory for patients, stating that US drug pricing had long subsidized lower prices abroad and that these deals would begin to reverse that dynamic. He emphasized the administration’s use of tariff threats and regulatory pressure as effective tools in bringing manufacturers to the table. 

While the headline figures suggest steep price cuts, health care analysts urge caution. Many discounts apply to Medicaid and direct-to-consumer pricing, which may not immediately translate into lower costs for patients with private insurance or traditional Medicare. Medicaid already secures some of the lowest drug prices in the US, meaning the net savings could be more modest than advertised for the broader population. 

Critics also question how widely the direct sales model will scale, noting that wholesalers, pharmacy benefit managers (PBMs) and insurers remain deeply embedded in the drug distribution system. Whether companies can meaningfully bypass these intermediaries without broader regulatory changes remains uncertain. 

The deal’s effects aren’t confined to the US. Roche’s CEO has publicly warned that pharmaceutical companies might raise prices in wealthier markets like Switzerland to offset revenue losses from lower American prices, highlighting the complex global pricing landscape for innovative medicines. 

Trump’s announcement is part of a broader push by his administration to challenge drugmakers through tariffs and pricing mandates. 

Six other major firms, including Pfizer, Eli Lilly, Novo Nordisk, AstraZeneca and EMD Serono, had previously agreed to similar concessions, and the White House signaled that additional deals with companies like Johnson & Johnson and AbbVie are forthcoming. 

MFN agreements with Eli Lilly and Novo Nordisk focused on their hugely popular diabetes and obesity drugs, offered through direct-to-consumer channels or via Medicaid and Medicare. 

Pfizer, the first major drugmaker to strike a deal with the administration, agreed to provide discounts on select medicines through TrumpRx.gov and to offer certain drugs to Medicaid at MFN prices.

The MFN pricing policies begin to roll out in early 2026 and will be in effect for five years until 2030.