President Donald Trump on Friday unveiled a sweeping set of drug price agreements with nine major pharmaceutical companies, presenting the initiative as a cornerstone of his efforts to bring US medical costs closer to those paid in Europe.
The announcement marked a significant expansion of the administration’s pricing push, with Trump confirming that deals have now been struck with 14 of the 17 drugmakers he formally called for price cuts in July. Central to this strategy is the launch of a new direct-to-consumer portal, TrumpRx.gov, to allow patients to purchase certain drugs without using insurance.
Which drug companies signed with Trump?
The companies named on Friday were Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi.
They join earlier participants including Pfizer, AstraZeneca, Eli Lilly, Novo Nordisk and EMD Serono.
The drugmakers, according to administration officials, wanted to reach an accommodation in the White House to avoid potential regulatory action that could significantly reduce profits.
What is TrumpRx.gov and how will it work?
Under the agreements, participating manufacturers will sell select drugs through their own websites, allowing Americans to pay directly rather than through insurance companies. The upcoming TrumpRx.gov government portal will act as a central directory directing patients to these sites. Officials said the platform is expected to be fully operational in January after a promotional launch earlier this fall.
The direct purchase model focuses mostly on drugs commonly prescribed in primary care, rather than high-cost specialty treatments such as oncology drugs.
Which drugs will be cheaper – and which won’t?
Among the drugs singled out by the White House were Amgen’s $239-a-month cholesterol drug Repatha, GSK’s $89-a-month Advair Diskus asthma inhaler, and Merck’s $100-a-month diabetes treatment Januvia.
However, not all offers will be available to most households. Gilead’s hepatitis C drug Epclusa will be priced at $2,492 per month on the website, despite the company saying insurance patients “typically … pay between $0 and $5 per month” through existing coverage or assistance programs.
Several discount drugs are also nearing the end of their patent lives, a point at which competition from generics could push prices down in any case.
What does this mean for Medicaid and Medicare?
The companies also pledged to market new drugs in the United States at prices comparable to those charged in other wealthy countries and to offer most products to state Medicaid programs at internationally comparable rates.
People covered by Medicaid already face out-of-pocket minimums, which federal law caps at $8 per prescription for the lowest-income recipients. Medicaid is also entitled by law to the lowest drug prices available on the US market.
Bristol Myers Squibb said it will provide the blood thinner Eliquis for free to Medicaid programs. The new Medicare price of $231 a month for Eliquis, enabled by the Biden-era law, is set to go into effect in January. Commenting on the announcement, Dr. Benjamin Rome of Brigham and Women’s Hospital said, “It’s very likely that Medicaid programs were already getting it for free or almost free.”
Will most Americans really pay less for drugs?
Health policy experts remain skeptical about the short-term impact. “The bottom line is that the deals will not lower prices for most Americans,” said Ameet Sarpatwari of Harvard Medical School.
In some cases, patients could pay more by bypassing insurance and buying directly through TrumpRx, especially where existing coverage already offers lower deductibles.
However, Mr Trump framed the deals in broad terms, calling for price cuts of up to 800 per cent and declaring: “This represents by far the biggest victory for patients in the history of American health care.”
Why is the White House also focusing on insurance companies?
In a speech from the Roosevelt Room, the president also took aim at insurance companies, warning that executives would soon be summoned to Florida or the White House to discuss premium cuts.
“They have to earn less, much less,” he said.
Shares in major insurers including UnitedHealth Group, CVS Health and Cigna fell after the remarks. Responding on behalf of the industry, AHIP CEO Mike Tuffin said, “Health plans are doing everything they can to protect Americans from high and rising health care costs, and we welcome every opportunity to discuss common sense solutions to lower costs for everyone.”
The rhetoric comes as increased subsidies under the Affordable Care Act in the marketplaces expire at the end of the year, a change that is expected to raise premiums for millions of Americans and increase political pressure on Republicans.
What did the drug makers get in return from the US?
In exchange for price concessions, pharmaceutical companies secured three-year exemptions from potential tariffs on imported drugs. Trump has repeatedly threatened high tariffs on foreign-made drugs, but has yet to impose them.
Executives from participating companies appeared alongside the president during the announcement, each offering brief remarks praising the initiative and thanking the administration.
The three major manufacturers — AbbVie, Johnson & Johnson and Regeneron — have yet to finalize deals, though all have confirmed that discussions are underway. Trump said more deals, including one with Johnson & Johnson, could be announced within days.
Is this the end of drug price reform in the US?
Despite the fanfare, Trump’s deals stop short of imposing mandatory price controls and leave untouched the high costs of many brand-name drugs covered by private insurance and Medicare. These expenses continue to be borne by employers, taxpayers and consumers through insurance premiums and out-of-pocket costs.
The Trump administration has completed internal reviews of potential regulatory proposals, including rules to “protect US Medicare from rising drug costs” and create a “global benchmark for effective drug pricing.” No formal regulations have yet been announced, but officials acknowledge that the prospect of tougher action has played a role in bringing drugmakers to the negotiating table.
For now, the White House is betting that TrumpRx.gov and the voluntary agreements will show momentum in affordability — though questions remain about how much relief most Americans will actually feel.
