In a significant move aimed at reducing drug costs for Americans, President Donald Trump announced a partnership with pharmaceutical giant Pfizer on July 7, 2025. This agreement aims to align U.S. drug prices with those of other developed nations through a “most-favored-nation” pricing model. Under this initiative, American patients can expect discounts ranging from 50% to 100% on select medications.
While speaking from the Oval Office, Trump emphasized that the deal will ensure that every state Medicaid program has access to these reduced prices. “No family should ever be forced to choose between filling a prescription and putting food on the table,” stated Robert F. Kennedy Jr., the Secretary of Health and Human Services, highlighting the human impact of this agreement.
Details of the Agreement
This partnership marks Pfizer’s first agreement of this nature with the federal government. Specific medications included in the deal are notable. For example, Eucrisa, a topical ointment for atopic dermatitis, will be available at an 80% discount for patients purchasing directly. Similarly, Xeljanz, an oral medication utilized for rheumatoid arthritis, will be offered at a 40% discount. Additionally, Zavzpret, a treatment for migraines, will be sold to patients at a 50% discount.
Pfizer’s CEO, Albert Bourla, heralded the agreement as a “landmark” achievement, asserting that it will significantly enhance Americans’ access to essential medications. “There is no doubt about it. They are the ones that will see a significant impact in their ability to buy medicines,” Bourla remarked.
Introducing TrumpRx
Alongside the pricing agreement, Trump also unveiled a new direct-to-consumer website named “TrumpRx.” This platform will enable individuals to purchase selected drugs directly at discounted prices, further facilitating access to affordable healthcare. “These drugs will be available for direct purchase online at a website operated by the federal government,” Trump explained, indicating a streamlined approach to drug procurement.
The agreement also entails a substantial investment from Pfizer, amounting to $70 billion, earmarked for U.S. manufacturing and research initiatives. In exchange, Pfizer will receive a three-year exemption from tariffs, a move intended to bolster the pharmaceutical sector within the country.
Looking ahead, Trump mentioned plans to meet with additional drug manufacturers next week, indicating a broader strategy to address pharmaceutical pricing in the U.S. This agreement with Pfizer could set a precedent for future negotiations with other companies, potentially expanding the range of discounted medications available to American consumers.
As discussions surrounding drug pricing continue to evolve, this partnership represents a proactive step in addressing one of the most pressing concerns for many families across the nation.
