INTRODUCING MOST-FAVORED-NATION PRICING: Today, President Donald J. Trump unveiled a pivotal agreement with pharmaceutical titan Pfizer, aimed at aligning American drug prices with those of other developed nations under the most-favored-nation (MFN) pricing model.
- This landmark agreement ensures that every Medicaid program across the United States will have access to MFN prices for Pfizer products, potentially saving millions and continuing President Trump’s commitment to enhancing support for vulnerable populations.
- By instituting MFN pricing on all new innovative medicines developed by Pfizer, the agreement curtails the ability of foreign nations to benefit from American pharmaceutical advancements without contributing their fair share.
- Furthermore, Pfizer is mandated to redirect the increased foreign revenues gained through American trade policies directly back to American patients.
- As part of this arrangement, Pfizer will offer significant discounts on its medications sold directly to American consumers, effectively lightening the burden on patients.
DELIVERING COST SAVINGS: The initiatives announced today are set to deliver real financial relief to American healthcare consumers and the healthcare system at large. Collectively, over 100 million patients suffering from conditions treated with Pfizer medications will reap the benefits of these negotiations. Specific examples include:
- Eucrisa, an ointment for atopic dermatitis, will be accessible at an 80% discount when purchased directly by patients.
- Xeljanz, a widely prescribed treatment for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount for direct purchases.
- Zavzpret, a popular migraine treatment, will see its price slashed by 50% for patients buying directly.
COMBATING INTERNATIONAL FREELOADING ON U.S. INNOVATION: President Trump is taking significant steps to rectify a system that allows foreign pharmaceutical companies to charge low prices in their countries while Americans are left to bear exorbitant costs.
- Recent data indicates that Americans are paying over three times the prices for brand-name drugs compared to other countries in the Organization for Economic Cooperation and Development, even after accounting for discounts.
- The U.S. population constitutes less than five percent of the global total, yet it contributes to approximately 75% of worldwide pharmaceutical profits. This imbalance demonstrates an unsustainable economic model.
- American taxpayers are effectively shouldering the burden of generous research subsidies and substantial healthcare expenditures, which pharmaceutical companies exploit by offering lower prices abroad while overcharging domestic consumers to subsidize foreign market access.
FULFILLING A COMMITMENT TO AMERICAN PATIENTS: With these measures, President Trump is proving that promises made during his administration are not mere rhetoric but actionable commitments aimed at American patients.
- On May 12, 2025, he signed an Executive Order titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” which directed various actions to align American drug prices with those of comparable countries.
- On July 31, 2025, he communicated directly with leading pharmaceutical companies, outlining specific steps they must undertake to ensure U.S. prescription drug prices match the lowest rates found in other developed nations.
- As President Trump stated, “In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism abroad with skyrocketing prices at home. And when I say the price is different, you can see some examples where the price is beyond anything — four times, five times different.”
