More Trump deals to lower drug prices : Shots

President Trump announced agreements with nine pharmaceutical companies to align U.S. drug prices with those of other wealthy countries.

A total of fourteen companies have now signed most-favored-nation pricing deals with the administration. The companies involved in the recent announcement include Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.

As part of the agreements, the companies have committed to charging the U.S. government no more than what other developed countries pay for new drugs. These deals will enable state Medicaid programs to access lower drug prices from the participating companies. According to a White House statement, these changes are expected to result in significant cost savings.

Additionally, the pharmaceutical companies have agreed to invest at least $150 billion in U.S. manufacturing operations to boost domestic production of medications.

Furthermore, the companies have committed to offering some of their popular drugs at reduced prices to consumers who make direct purchases through a government website called TrumpRx.com. The TrumpRx platform is set to launch in early 2026 and will redirect consumers to the companies’ direct-to-consumer websites for order fulfillment.

For example, Merck will lower the price of Januvia, a Type 2 diabetes medication, from $330 to $100 for patients buying through TrumpRx. Amgen will reduce the price of Repatha, a cholesterol-lowering drug, from $573 to $239 for TrumpRx purchases.

In exchange for these concessions, the companies will be granted a three-year exemption from potential administration tariffs.

The exact impact of these agreements on consumer savings remains uncertain. Medicaid and its beneficiaries already benefit from some of the lowest drug prices, and individuals with health insurance may pay lower copays for medications than if they were to pay cash directly to the drug manufacturers.

During the press event, Trump expressed his desire to also negotiate lower prices with health insurers, stating, “I’m going to call a meeting of the insurance companies and see if they will reduce their prices.”