Trump Announcement Today Targets High Drug Costs in the US
The deals include some of the largest names in the pharmaceutical industry, such as Bristol Myers Squibb, Gilead Sciences, Merck, and Roche’s US unit Genentech. Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK have also agreed to participate, as per a Reuters report.
Under the agreements, each company will reduce prices on most of the drugs it sells through Medicaid, the government health program for low-income Americans. Officials described the expected impact as “massive savings” on commonly used medicines, though they did not release specific numbers.
This move comes as US consumers currently pay far more for prescription drugs than patients in other developed nations, often close to three times as much, an issue Trump has repeatedly highlighted.
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TrumpRx Program Could Lower Cash-Pay Drug Costs Nationwide
Beyond Medicaid, the deals also cover lower cash-pay prices for select medicines sold directly to consumers, potentially through the TrumpRx.gov website. Drugmakers also agreed that new drugs introduced in the US will be priced no higher than those in other wealthy countries. In exchange, participating companies can receive a three-year exemption from tariffs and commit to expanding manufacturing.
Merck to Offer Discounts on Diabetes Drugs Under TrumpRx
Merck detailed its plans, saying it will sell its diabetes treatments Januvia, Janumet, and Janumet XR directly to US consumers at about 70% off list prices, as per the Reuters report. Those drugs are expected to face generic competition next year. If approved, Merck’s experimental cholesterol drug enlicitide will also be offered through direct-to-consumer channels. Enlicitide is expected to undergo a fast-track review by the FDA.ALSO READ: Largest tax refund season of all time? How Trump’s ‘Big Beautiful Bill’ could boost 2026 paycheck & who benefits most
Major Drugmakers Sign On to Trump Rx Pricing Plan
The agreements follow pressure Trump applied earlier this year, when he sent letters to 17 major drugmakers urging them to adopt “most-favored-nation” pricing for Medicaid and to ensure new drugs are not launched in the US at higher prices than abroad. Five companies, Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono, had already reached similar deals with the administration.
Three major companies, Regeneron, Johnson & Johnson, and AbbVie, have yet to announce agreements. However, AbbVie is reportedly expected to finalize a deal on Friday, as per Reuters.
Most-Favored-Nation Pricing Central to Trump Drug Prices Strategy
Meanwhile, as part of the broader commitments, the drugmakers agreed to apply most-favored-nation pricing to all new US drug launches across commercial, government, and cash-pay markets, including Medicare. Officials also said a portion of revenue from foreign sales will be returned to the US to help offset costs, reported Reuters.
What Comes Next After Trump’s Drug Price Announcement
The companies collectively pledged more than $150 billion in US investment for research, development, and manufacturing, though it was unclear whether that figure includes earlier commitments. Merck said it alone would contribute $70 billion, as per the Reuters report. Several firms also agreed to donate drug ingredients to the US strategic reserve.
Analysts noted that Medicaid already benefits from substantial discounts, sometimes exceeding 80%, and Pfizer has warned that the expanded Medicaid discounts could compress prices and margins in 2026.
FAQs
Which companies are part of the Trump drug prices deal?
Companies include Merck, Bristol Myers Squibb, Gilead Sciences, Genentech, Novartis, Amgen, Sanofi, GSK, and Boehringer Ingelheim.
How will TrumpRx affect Medicaid patients?
Most drugs sold through Medicaid will see price cuts, which officials say could lead to massive savings.