Washington, D.C. – On Friday, December 19, 2025, President Donald Trump announced voluntary agreements with nine leading pharmaceutical companies to implement "Most Favored Nation" (MFN) pricing on select drugs, aiming to align U.S. prices with the lowest rates paid in other developed nations. The deals involve Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech (Roche), Gilead Sciences, GlaxoSmithKline (GSK), Merck, Novartis, and Sanofi, bringing the total number of participating manufacturers to 14 out of 17 targeted by the administration earlier in the year.
Flanked by pharmaceutical executives and health officials in the White House Roosevelt Room, Trump described the agreements as a historic step to end what he called years of America being "laughed at and scoffed at" for paying exorbitant drug prices—sometimes up to 10 times higher than abroad. "They've agreed to offer many of their flagship drugs at heavily discounted Most Favored Nations prices. In other words, whatever the drug sells for in the world, whatever the lowest number is... we will match that price," Trump stated.
The affected medications include treatments for chronic conditions such as heart disease, hypertension, Type 2 diabetes, HIV, asthma, multiple sclerosis, hepatitis C, and certain cancers. Specific examples highlighted by the White House include significant reductions for cash-paying consumers via direct purchases:
- Amgen's Repatha (cholesterol-lowering) from $573 to $239 per month.
- Boehringer Ingelheim's Jentadueto (diabetes) from $525 to $55.
- Merck's Januvia (diabetes) from $330 to $100.
- Sanofi's Plavix (blood thinner) from $756 to $16, with insulin products capped at $35 per month.
Bristol Myers Squibb committed to providing its blockbuster blood thinner Eliquis free to Medicaid programs. Several companies also pledged donations of active pharmaceutical ingredients to a national strategic reserve for emergencies.
In exchange, the manufacturers receive a three-year reprieve from potential pharmaceutical import tariffs and commit to investing over $150 billion collectively in U.S. manufacturing, research, and development to bolster domestic production.
The discounted drugs will be available through the forthcoming TrumpRx.gov website, a government portal set to launch in January 2026. The site will not sell medications directly but redirect users to manufacturers' platforms for cash purchases, bypassing insurance intermediaries and pharmacy benefit managers.
This initiative builds on Trump's May 2025 executive order reviving MFN pricing and July letters to 17 major drugmakers urging compliance. Previous deals included Pfizer, Eli Lilly, Novo Nordisk, AstraZeneca, and EMD Serono. Administration officials indicated remaining companies, such as Johnson & Johnson, may announce agreements soon.
The announcements follow a pattern of voluntary negotiations amid threats of tariffs and regulatory actions. A 2024 RAND study confirmed U.S. branded drug prices average over four times higher than in peer nations. Critics, including some health economists, note Medicaid already secures low prices via statutory protections, and insured patients may not benefit if cash purchases do not count toward deductibles. Industry shares rose modestly post-announcement, reflecting investor relief over tariff exemptions.
Trump hinted at upcoming talks with health insurers to extend affordability measures. The program targets primary care and specialty drugs, with broader impacts anticipated on new launches priced at MFN levels across markets.
These developments mark a key second-term priority for Trump, fulfilling campaign promises to curb "global freeloading" on U.S.-funded innovation while enhancing national pharmaceutical security.
