Trump Breaks Deal With Big Pharma to Reduce US Drug Prices to Global Levels

US President Donald Trump announced agreements with nine major pharmaceutical companies to reduce prescription costs by establishing global pricing regulations, a new direct-to-consumer sales platform, and aligning US prices with those of other wealthy countries.

In a major effort to bring domestic costs into line with those in other wealthy nations, US President Donald Trump on Friday announced agreements with nine major pharmaceutical companies to lower prescription drug prices in the US.

Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi are some of the companies involved. As part of the agreements, the pharmaceutical companies will set costs for medications offered through Medicaid that are similar to those in other developed countries.

According to news agency AP, new medications introduced by these companies will also adhere to "most-favored-nation" pricing in all markets, including commercial insurance, cash-pay consumers, Medicare, and Medicaid.

According to Trump, the accords would put an end to a system where US patients pay significantly more than those in other countries. Trump claimed that they were financing the entire world during a press conference, according to Reuters. They no longer do it.

Prescription medicine costs in the US are frequently almost three times higher than in other wealthy nations. Additionally, the companies decided to sell pharmacy-ready medications on TrumpRx, a new direct-to-consumer website that will go live in January and let customers purchase medications straight from producers. Some companies will give discounts of up to 70% on certain medications, according to Reuters, while analysts pointed out that Medicaid already gets significant rebates.

Health economist William Padula called Bristol Myers Squibb's decision to give Medicaid free use of its popular blood thinner Eliquis "a thoughtful health equity move," according to the AP. Additionally, a number of businesses promised to contribute active medicinal ingredients to a national reserve for use in an emergency.

As the agreements also provide a three-year reprieve from potential pharmaceutical tariffs in exchange for commitments to invest in US production, markets responded favorably, with shares of the majority of participating drugmakers gaining, according to Reuters.

According to the AP, Trump claimed to have forewarned businesses about potential tariffs to pressure them to "do the right thing." The administration has now reached pricing agreements with 14 of the 17 pharmaceutical companies it contacted earlier this year, and talks are still ongoing with the remaining companies, according to CNBC.