President Trump Achieves Landmark Drug Price Reductions
Washington, D.C. – In a move hailed as a significant victory for American patients, President Donald Trump announced Friday that a groundbreaking agreement has been reached with leading pharmaceutical companies to dramatically lower prescription drug prices.
During a White House event, the President stood alongside representatives from nine major pharmaceutical firms, including Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi, to unveil the details of the historic deal.
President Trump has long been a vocal advocate for reining in the high cost of prescription drugs, arguing that Americans are unfairly burdened with prices far exceeding those in other developed nations. His administration has consistently maintained that it is unjust for American taxpayers to shoulder a disproportionate share of global pharmaceutical profits.
The agreement centers around a “most favored nation” pricing policy, which aims to match U.S. drug prices to the lowest rates paid globally. The President emphasized that this approach will bring much-needed relief to American families and seniors struggling to afford essential medications.
While some foreign countries may see a slight increase in their drug prices as a result of this agreement, President Trump asserted that this is a preferable outcome to imposing tariffs. He credited the threat of tariffs as a key factor in persuading pharmaceutical companies to come to the negotiating table.
“They asked if it was a threat, and I said ‘yes, it is a threat,'” the President stated, highlighting the importance of strong negotiating tactics to protect American interests.
To date, 14 of the 17 pharmaceutical companies initially contacted by the administration have signed on to the agreement, with the remaining three expected to finalize their participation soon. The President expressed confidence that these companies will ultimately join the effort to lower drug prices for Americans.
The President cited specific examples of the anticipated price reductions, including Sanofi’s blood thinner Plavix, which is expected to decrease from $750 to under $16, and Gilead’s hepatitis C medication, which is slated to drop from nearly $25,000 to less than $2,500 – a staggering 90% reduction.
In addition to lowering drug prices, the President announced that pharmaceutical companies have committed to investing over $150 billion to expand domestic drug manufacturing. This investment is expected to create jobs and strengthen the nation’s medical supply chain, ensuring that Americans have access to the medications they need.
Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, praised the agreement as “affordability in action.” He emphasized the real-world impact of lower drug prices, particularly for families, working individuals, and seniors on fixed incomes who struggle to afford their prescriptions.
U.S. Secretary of Commerce Howard Lutnick lauded the administration’s teamwork in reducing costs and bringing manufacturing back to the United States. He emphasized the importance of ensuring that medications are made in America, overseen by the Food and Drug Administration (FDA), and safe for consumption.
Several pharmaceutical company leaders provided details about their investments and the specifics of their agreements with the Trump administration.
Cari Gallman, Executive Vice President of Bristol Myers Squibb, announced that the company would provide its top-selling blood thinner, Eliquis, to Medicaid recipients free of charge. She also stated that the company would be donating over six and a half tons of Eliquis to shore up the national medicine reserves, as part of its $40 billion commitment to research and development in the U.S.
