TrumpRx to Roll Out Pfizer’s Deal to Lower US Drug Prices

Pfizer has reached an agreement with the Trump administration to reduce the cost of many of its prescription drugs.

The company said many of its primary care and specialty drugs would be available on “TrumpRx.” TrumpRx, a direct-to-consumer platform launching in early 2026, will allow patients to access discounted medicines through Pfizer’s new agreement.

Under the deal, Pfizer will sell medicines at “Most Favored Nation” pricing, meaning the lowest net price offered in peer countries like Canada, France and Germany.

The policy will apply across all state Medicaid programs starting in 2026 and will also cover any new medicines Pfizer brings to market. It may also serve as a model that other pharma companies will feel pressured to follow.

Average discounts will be around 50%, with some much deeper: 80% for Eucrisa (atopic dermatitis), 40% for Xeljanz (rheumatoid arthritis, psoriatic arthritis, ulcerative colitis) and 50% for Zavzpret (migraine).

In return, the administration granted Pfizer a three-year pause on planned tariffs for pharmaceutical imports, while the company pledged $70 billion to expand US manufacturing and research. The deal also includes a requirement for Pfizer to repatriate additional foreign revenue tied to US trade policies.

Why US Drug Prices Are Higher

A January 2024 report from the Assistant Secretary for Planning and Evaluation (ASPE) found that US drug prices in 2022 were 2.78 times higher than in other OECD countries. Brand-name drugs were more than 3.2 times higher, even after accounting for estimated US rebates.

Past domestic spending trends also reflected similar pressures. A 2022 ASPE report that examined IQVIA data found US prescription drug spending rose from $520 billion in 2016 to $603 billion in 2021. This increase was deemed mostly due to higher spending per prescription, rather than more prescriptions being filled.

The most expensive 10% of drugs represented fewer than 1% of prescriptions but accounted for up to a quarter of spending outside of retail settings.

Experts at the time warned that drastic cuts could stifle innovation, but they suggested that value-based pricing and predictable price declines could be viable alternatives.

Industry Responses Beyond Pfizer

Other pharma companies have been adjusting their strategies as well.

In a statement released on August 14, 2025, Eli Lilly said it supported the administration’s goal of rebalancing drug costs across developed nations, even if it meant higher prices in Europe. The company confirmed it had raised the UK list price of its diabetes drug Mounjaro while keeping it accessible through the NHS.

Lilly also pointed to steps already taken in the US, such as cutting insulin prices by 70% and capping monthly costs at $35.

In the same statement, however, the company said it opposes tariffs on medicines, warning broad measures could raise costs, limit patient access and weaken US leadership.

It added that structural issues in the US system, including pharmacy benefit managers (PBMs) and the 340B program, remain major barriers to sustainable affordability.

In September 2025, Swiss companies Roche and Novartis said Trump’s proposed 100% tariffs on branded drug imports were unlikely to impact them, citing ongoing US manufacturing expansions.

Tariffs, Pressure and the Road Ahead

A Reuters report indicated that Pfizer’s agreement followed stalled discussions with 17 drugmakers, during which Trump threatened a 100% tariff on imports. The deal, which covers Medicaid pricing, new product launches and US investments, sets a standard that competitors may feel pressured to follow.

Pfizer is set to roll out Medicaid “Most Favored Nation” pricing in early 2026, with additional agreements likely to follow.

Executives have cautioned that without reforms to insurers and PBMs, lower list prices or direct-purchase discounts may not translate into reduced out-of-pocket costs.

Some firms, including Bristol Myers Squibb and AstraZeneca, have launched direct-purchase programs, while Johnson & Johnson and Sanofi have pledged billions in US manufacturing to qualify for tariff relief.

Analysts question whether “Most Favored Nation” pricing can be implemented without broader structural reforms.

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