Trump Announces First Deal to Lower Costs of Prescription Drugs

On Sept. 30, President Donald Trump announced the first agreement with a major pharmaceutical company, Pfizer, to offer lower prices on its drugs to the Medicaid program and directly to consumers.

According to the White House, the president aims to bring American drug prices in line with the lowest paid by other developed nations (or the most-favored-nation [MFN] price).

These negotiated drugs will be available on TrumpRx.gov, a federally operated website. The website is expected to launch sometime in 2026 and would point consumers to pharmaceutical companies' direct-to-consumer websites to fill their orders. Such website deals would be available for patients not using their health insurance.

Pfizer also agreed to launch new medicines at prices "at parity" with those in other countries. Trump noted that, as long as Pfizer continues to invest in manufacturing in the United States, the pharmaceutical company won't be subject to tariffs on drugs imported into the country.

This new government approach is really shaking things up, putting more pressure on drug companies to keep their prices competitive—which could mean big changes for pharmacy benefit managers (PBMs) and the way employers manage prescription coverage. With more deals expected soon, it’s important for both employers and employees to keep an eye on how these updates might affect coverage options and out-of-pocket costs.

According to the announcement, more than 100 million patients are impacted by the diseases that Pfizer's medicines treat. Medications affected by the agreement with Pfizer include the following:

• Eucrisa, a topical ointment for atopic dermatitis, will be available at an 80% discount to patients purchasing directly.
• Xeljanz, an oral medication for rheumatoid arthritis, psoriatic arthritis and ulcerative colitis, will be available at a 40% discount.
• Zavzpret, a treatment for migraines, will be available at a 50% discount.

What's Next

This is the first deal related to the MFN pricing, and the president stated that similar deals with other drugmakers are in the works. Employers should continue to monitor prescription drug changes.

For more information on the latest pharmacy benefits news employers need to know, connect with our OneDigital Pharmacy Consulting team.