The White House announces agreement with Pfizer to reduce drug prices in the country
The president said the cost of some drugs could decrease from 50-85%.
President Donald Trump closes deal with Pfizer CEO Albert Bourla
President Donald Trump on Tuesday announced the first agreement with major pharmaceutical company Pfizer "bring American drug prices in line with the lowest paid by other developed nations," a White House statement reported.
The agreement will give all state Medicaid programs in the country access to MFN (most-favored-nation pricing) drug prices on Pfizer products, resulting in savings of millions of dollars and continuing the presidential line of having a health program designed for the most vulnerable, according to the official release.
">.@POTUS: "I'm cutting drug prices by 85%... Because I did something that nobody was willing to do. Other countries pay a tiny fraction of what we do, and I instituted favored nations. We're now going to pay the lowest in the world." pic.twitter.com/Bd7BxMJu4y
— Rapid Response 47 (@RapidResponse47) May 20, 2025
Trump said the drugs will be available for purchase online on a website operated by the federal government, to be called TrumpRx.
"Today, I am thrilled to announce that one of the world's largest pharmaceutical manufacturers and one of the best anywhere in the world, Pfizer, has agreed to offer countless prescription medications at major discounts in the United States as a result of the 'Most-Favored-Nation' drug pricing order that we established earlier this year," the president said from the Oval Office.
Americans have been subsidizing research and development costs across the globe because of the higher prices they have been paying, Trump explained in his remarks.
The agreement also requires Pfizer to repatriate increased foreign revenues on existing products that the drugmaker earns as a result of strong trade policies that put Americans first, according to the statement.
Joining Trump in the Oval Office, Pfizer CEO Albert Bourla called this a "historic day" because the drugmaker is reversing an "unfair situation."
Discounts of up to 85% on medicine
Pfizer will offer medication at a steep discount off list price when it sells them directly to American patients. The president said the cost of some drugs could experience price decreases of 50% to 85%.
The deal Pfizer reached with the White House will give the company a three-year grace period on Trump's announced tariffs on foreign-made pharmaceuticals, which are expected to take effect Wednesday.
Cost reductions
- Eucrisa, a topical ointment for atopic dermatitis, will be available at an 80% discount for patients who buy direct.
- Xeljanz, an oral medication widely used for rheumatoid arthritis, psoriatic arthritis and ulcerative colitis, will be available at a 40% discount for patients who purchase directly.
- Zavzpret, a commonly used treatment for migraines, will be sold directly to patients at a 50% discount.
The price drop will also apply to other products such as Pfizer's menopause drug Duavee, which will be available for as little as $30, representing an 85% discount, according to the company spokesman. Overactive bladder treatment Tobias will drop 85%, to $42, he added.
A 2022 survey by KFF, a nonpartisan health policy research group, found that 3 in 4 U.S. adults say drug costs are unaffordable.
Pfizer, one of the largest American drug producers, makes a range of medications, including the blood thinner Eliquis, cancer drug Ibrance and the COVID-19 vaccine.
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