Trump Administration Secures Lower Drug Prices from Major Pharmaceutical Companies

Sat Dec 20 2025 03:14:20 GMT+0200 (Eastern European Standard Time)

In a landmark decision, President Trump announces that nine leading drug manufacturers have committed to reducing their prescription drug prices in the United States, aligning them with prices in other developed nations.

President Donald Trump revealed that nine pharmaceutical giants, including Amgen and Merck, have agreed to lower their drug prices in the U.S. to match those in other countries. This initiative, aimed at making medications more affordable, particularly for Medicaid patients, will also enforce 'most-favored-nation' pricing for newly launched drugs. Experts highlight potential benefits for health equity but caution that the long-term effects of these agreements are yet to be seen.

In a significant step towards reducing medication costs for millions of Americans, President Donald Trump announced that nine major drug manufacturers have agreed to lower their prescription drug prices in the U.S. This landmark agreement includes pharmaceutical leaders such as Amgen, Merck, and GSK, who will align their Medicaid drug pricing with what they charge in other developed nations.

This initiative is geared towards providing relief for those enrolled in Medicaid, the government-funded program aimed at assisting low-income populations, while also applying the same low pricing to newly launched medications across the country.

Although many patients already benefit from insurance coverage, often limiting their out-of-pocket expenses, the newly negotiated prices are expected to create a significant impact on those who are uninsured or have little bargaining power in drug negotiations.

Experts in health economics, like William Padula from USC, voice optimism about the agreement, calling it potentially beneficial, with the 'most-favored-nation' strategy ensuring cheaper prices. However, they underscore that the long-term consequences of these agreements, particularly in terms of improving public health, will take time to assess.

Under the agreement, companies will be making notable donations of essential medications to the national reserve, enhancing access to critical resources during emergencies. Bristol Myers Squibb has committed to supplying its widely used blood thinner, Eliquis, at no charge to the Medicaid program.

While this development raises hopeful prospects for drug cost reform, the effectiveness of lowering drug prices and its overall impact on public health equity remains to be seen.