• Source: www.wsj.com

President Donald Trump on Sept. 30 announced an agreement with Pfizer to lower the cost of its medications in the United States. The deal includes selling existing U.S. drug prices to Medicaid patients at the lowest price offered in other developed nations. The Trump administration calls this the “most-favored-nation” price. Pfizer also agreed to extend this pricing model to new drugs for Medicare, Medicaid, and commercial payers.

The agreement gives Pfizer a three-year exemption from pharmaceutical-specific tariffs, provided the company increases domestic investment. Pfizer said it will spend $70 billion to expand U.S. drug prices manufacturing and research facilities.

Shares of Pfizer rose more than 4% following the announcement.

Website for discounted U.S. drug prices

Trump said discounted U.S. drugs will be available for direct purchase through a new government-run website, TrumpRx.gov. According to him, prices will fall between 50% and 100% for several medications.

“Pfizer has agreed to provide some of the most popular current medications to our consumers at heavily discounted prices,” Trump said.

Pfizer said more than 100 million patients are affected by diseases treated by its discounted medicines, which include therapies for migraines, rheumatoid arthritis, menopause, eczema, and autoimmune conditions.

The company listed several examples:

• Duavee, for menopause symptoms, will cost as little as $30, an 85% discount.
• Eucrisa, an ointment for eczema, will drop to $162, about 80% lower.
• Tovias, for overactive bladder, will be sold for $42, an 85% discount.
• Abrilada, for autoimmune diseases, will be available at a 60% discount.
• Xeljanz, for rheumatoid arthritis, will see a 40% reduction.
• Zazvpret, a migraine U.S. drug , will be offered at 50% off.

Albert Bourla, Pfizer’s chief executive officer, said the company complied with all of the requests outlined in Trump’s earlier letter to major drugmakers. “The big winner clearly will be the American patients,” Bourla said.

Pressure on other drugmakers

The deal comes as Pfizer and 16 other pharmaceutical companies faced a Sept. 29 deadline to take steps to lower drug prices. In May, Trump signed an executive order reviving the “most favored nation” policy, which ties U.S. drug prices costs to the lower prices in other countries.

The White House confirmed that Eli Lilly is also in negotiations for a similar agreement. “If we don’t make a deal, we’re going to tariff them,” Trump said, signaling pressure on other companies to join.

Beginning Oct. 1, the administration plans to impose a 100% tariff on branded and patented pharmaceutical imports. However, Trump said the measure will not apply to companies that are actively building manufacturing plants in the U.S.

Analysts said the agreement could benefit both Pfizer and the broader pharmaceutical industry by reducing the risk of harsher tariff measures. A report from BMO Capital Markets noted that the deal “adds certainty and shifts policies potentially away from Pharma tariffs.”

Calls for transparency and fairness

Policy observers said the agreement marks a significant shift in U.S. drug pricing policy, but added that more safeguards may be needed to ensure public confidence and industry-wide fairness.

Experts recommend publicly disclosing the terms of U.S. drug prices agreements, including criteria for exemptions and benchmarks used to set discounts, to avoid confusion over why certain deals are made. Involving third-party regulators or independent watchdogs in negotiations could also build trust and reduce concerns about favoritism.

Analysts noted that extending similar opportunities for exemptions and incentives to all pharmaceutical companies could help avoid the perception of preferential treatment toward Pfizer. Clear and universal eligibility guidelines, they said, would provide transparency and fairness across the industry.

Health policy experts also urged a more collaborative approach, bringing in pharmaceutical firms, patient advocacy groups, and healthcare providers to shape long-term reforms. Phased-in programs or pilot initiatives could allow time to test the effects and adjust policies before broader implementation.

Finally, economists said reforms should account for the potential impact on U.S. drug prices innovation and supply chains. They recommend offering targeted support for research and development to help companies adapt without cutting investment in new therapies.