President Donald Trump and pharmaceutical giant Pfizer have announced a deal to lower the price of several prescription drugs ‘starting immediately.’
The administration said in a press conference Tuesday that ‘virtually Pfizer’s entire portfolio of drugs’ will be offered at lower prices on TrumpRx, a ‘site soon to be launched.’
Americans using the website will be able to purchase prescription drugs directly rather than through insurance, press secretary Karoline Leavitt said Tuesday.
Chris Klomp, senior advisor to Department of Health and Human Services secretary Robert F Kennedy Jr, said that the deal will bring the highest discounts ‘in American history.’
The plan will adopt ‘most-favored-nation’ drug pricing, which searches for the lowest available medication price in other developed nations and adopts it.
It comes after Trump signed an executive order in May demanding pharmacy manufacturers use MFN pricing.
Trump claimed that some medicines, which he did not name, would lower in price by ‘up to 1,000 percent.’
It’s unclear exactly when any pricing changes would go into effect, but Trump claimed they will be ‘starting immediately.’ It’s also unclear whether the lower drug prices will be available for those on government insurance such as Medicare or Medicaid or those with private insurance.
The TrumpRx site is not yet available.
President Trump is pictured alongside, from left, Vice-President JD Vance, HHS secretary senior advisor Chris Klomp, Pfizer chief executive Albert Bourla, CMS administrator Dr Mehmet Oz and FDA commissioner Dr Marty Makary
The announcement also follows the administration’s plans to impose a 100 percent tariff on branded or patented pharmaceutical products manufactured outside of the US, raising the prices of drugs not made here.
Pfizer has also committed to investing $70billion to shift drug manufacturing to the US from overseas, as well as fund research and development.
FDA commissioner Dr Marty Makary said: ‘Today is the beginning of the end of the great American ripoff.
‘The growth of drug spending, that is the increase in drug pricing, is the fastest and biggest-increasing area of health care spending. So today’s announcement has incredible implications for health care spending in the United States.’
Klomp said: ‘This is a major win in the battle for affordable healthcare and affordable drugs.’
Albert Bourla, Pfizer chief executive, said at the press conference that the deal will enable the company to provide a ‘greater’ focus to innovations like cancer treatments and new, effective vaccines.
He said: ‘This is a historic day. Today we are turning the tide and reversing an unfair situation.’
Albert Bourla, Pfizer chief executive, is seen alongside Dr Oz and Klomp. Bourla said: ‘This is a historic day. Today we are turning the tide and reversing an unfair situation’
Trump also said he is going to unveil ‘next week’ an unspecified pill that could be lowered to just $10 for a prescription based on MFN pricing.
He also noted the administration ‘is making deals’ with other companies such as Eli Lilly, and if the firms do not comply, they will be subject to tariffs around 5 to 8 percent.
Trump said: ‘The world is going to go up a lot. But now it’s fair. We’re going to pay what the rest of the world is paying.’
The president acknowledged that ‘there will probably be a shutdown’ of the government, but it’s unclear how this may alter the Trump Rx timeline.
The latest data shows the annual cost of prescription medications per person in the US was about $1,400 in 2022, including patient out-of-pocket spending, insurer coverage, and government programs.
Trump said effects on drug prices will be ‘starting immediately’ but did not provide further detail on a timeline
Data from the Department of Health and Human Services (HHS) shows between January 2022 and January 2023, more than 4,200 prescription drugs increased in price, and nearly half were above the rate of inflation.
The average drug price increase over the course of the period was 15 percent, which translates to $590 per product. And the largest increase seen was 3,000 percent.
A 2024 JAMA study also found common drugs like Jardiance, which treat diabetes, are up to five times more expensive in the US that in nations like Australia.
The increases over the past several years have largely been blamed on a lack of restraints on drug prices in the US, along with drug companies offering financial incentives to doctors and hospitals.
Pfizer manufacturers and distributes 300 prescription drugs and vaccines, including the mRNA Covid vaccine long criticized by the Trump administration, erectile dysfunction pill Viagra and anxiety drug Xanax.
Its portfolio also includes 22 approved cancer medications to treat breast, prostate, kidney and lung cancer, among others.
| Drug | 2023 price | New price |
|---|---|---|
| Ozempic | $936 per month’s supply | $970 per month’s supply |
| Mounjaro | $1,023 per month’s supply | $1,070 per month’s supply |
| Dupixent | $3,584 per month’s supply | $3,800 per month’s supply |
| Biktarvy | $3,794 per month’s supply | $3,980 per month’s supply |
| Skyrizi | $20,000 a dose | $21,160 a dose |
| Wellbutrin | $2,113 per month’s supply | $2,322 per month’s supply |
| Shingrix | $185 per dose | $199 per dose |
| Eliquis | $560 per month’s supply | $594 per month’s supply |
| Trikafta | $25,067 for a 28-day supply | $26,546 for a 28-day supply |
| Xeljanz | $5,557 per month’s supply | $5,890 per month’s supply |
| Calquence | $16,192 per month’s supply | $16,678 per month’s supply |
| Fasenra | $5350 per month’s supply | $5,511 per month’s supply |