Economy|DrugsPfizer strikes deal with Trump administration to cut US drug pricesUS consumers not expected to start seeing lower prices under the Pfizer deal until 2026.
On Tue, Sep 30, 2025, an agreement was announced between the United States government and Pfizer, a prominent US pharmaceutical company, to reduce the cost of prescription medications for the Medicaid program. This initiative aims to benefit low-income…
On Tue, Sep 30, 2025, an agreement was announced between the United States government and Pfizer, a prominent US pharmaceutical company, to reduce the cost of prescription medications for the Medicaid program. This initiative aims to benefit low-income Americans.
Under the terms of the agreement, Pfizer will sell its existing medications to Medicaid patients at the lowest prices available in other developed countries. Additionally, new drugs will be launched in the US at the same prices offered in other high-income countries.
Pfizer has also committed to participating in a new online platform, TrumpRx, which will enable consumers to purchase drugs directly from manufacturers. It is expected that many of Pfizer's treatments will be available at an average discount of approximately 50% through this platform.
In addition to price reductions, Pfizer has agreed to invest $70 billion in domestic manufacturing facilities. This investment will focus on US-based research, development, and capital projects over the coming years, contributing to the expansion of manufacturing capabilities within the country.
Additionally, new drugs will be launched in the US at the same prices offered in other high-income countries.
According to senior administration officials, consumers are not expected to experience lower prices from the Pfizer deal until 2026.
This agreement follows an executive order signed in May, which set a deadline for drug manufacturers to voluntarily lower prices or face new restrictions on government payments. Further agreements with other pharmaceutical companies are anticipated in the coming weeks.
Bottles of medicine at a warehouse in Florence, New Jersey, US [File: Julio Cortez/AP Photo]
In an effort to encourage domestic production, the US government has announced plans to impose a 100% tariff on imports of branded or patented pharmaceutical products starting October 1, unless manufacturers expand their production within the United States.
Pfizer, as one of the largest US drug manufacturers, produces a variety of important medical products including the COVID-19 vaccine Comirnaty, the antiviral treatment Paxlovid, and several cancer therapies.
Based on reporting by Al Jazeera.