Trump Administration, Pfizer Reach Deal to Lower Medicaid Drug Prices, Launch Discount Site

President Donald Trump announced a landmark agreement with Pfizer to lower prescription drug prices for Medicaid patients by implementing most-favored-nation pricing, which aligns U.S. drug costs with those in other developed countries. This deal includes a provision that Pfizer will sell drugs directly to consumers through a new government-operated website called TrumpRx.gov, expected to launch in 2026, offering average discounts of 50% on many Pfizer medications. Trump emphasized that the U.S. has been subsidizing global pharmaceutical research and is now seeking to end this practice by ensuring fairer pricing for American consumers. Pfizer CEO Albert Bourla supported the initiative, highlighting it as a reversal of an unfair pricing situation, while the agreement has also prompted positive investor responses in the pharmaceutical sector. The administration’s broader strategy includes imposing tariffs on drug imports unless manufacturers build plants in the U.S., reinforcing pressure on drugmakers to comply. Additional deals with other drug companies are anticipated soon as part of this comprehensive effort to reduce U.S. drug prices.