Trump Announces Pfizer Deal, TrumpRx Drug Discount Site/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Drugmaker Pfizer has agreed to lower drug costs and invest $70 billion in U.S. manufacturing under a deal struck with the Trump administration, President Donald Trump said Tuesday. The announcement, which Trump made with Pfizer CEO Albert Bourla at the White House, came as the Republican president has for months sought to lower drug costs.
TrumpRx Drug Plan Quick Looks
- Trump to announce new site “TrumpRx” for lower-cost prescriptions
- Pfizer reaches deal with Trump administration on drug pricing
- Revives “Most Favored Nation” policy to match global drug prices
- Trump issues executive order demanding lower U.S. prices
- Drugmakers face FDA penalties and rule changes if they don’t comply
- Direct-to-consumer drug sales encouraged without insurance
- Trump threatens 100% tariff on brand-name drug imports
- Industry group PhRMA unveils AmericasMedicines.com in response
- Experts warn Trump lacks authority to enforce price mandates
- Drugmakers may raise international prices instead of cutting U.S. costs
Deep Look: Trump Announces TrumpRx Drug Discount Platform and Pfizer Pricing Deal
President Donald Trump is preparing to launch a direct-to-consumer prescription drug website, TrumpRx, as part of a broader effort to lower medication prices in the United States. According to sources familiar with the plan, the announcement will include a pricing agreement with pharmaceutical giant Pfizer and a renewed push for Trump’s long-touted “Most Favored Nation” (MFN) drug pricing policy.
“It’s going to have a huge impact on bringing Medicaid costs down like nothing else,” the president said.
“I can’t tell you how big this is,” he added.
The TrumpRx platform is designed to allow Americans to purchase medications directly — bypassing insurers — at reduced prices. The launch underscores Trump’s ongoing focus on drug affordability, which he’s positioned as a central issue in his 2024 campaign and presidency.
Health and Human Services Secretary Robert F. Kennedy Jr., who joined Trump, Bourla and others at the White House, applauded the president as he touted the deal.
“Americans should not be gouged paying 300 or 400 or 1,000% more than people in other countries for the exact same drug,” he said.
Pfizer Pricing Deal and Industry Pressure
While details of the Trump-Pfizer deal remain sparse, it marks a significant move after years of tension between the Trump administration and pharmaceutical manufacturers. In 2018, Pfizer delayed drug price hikes after Trump publicly criticized the increases on social media.
Now, under mounting pressure from Trump, the company appears ready to cooperate. Trump has reportedly issued formal letters to CEOs of 17 major drugmakers, demanding they offer MFN pricing not just to Medicare and Medicaid recipients, but also across commercial markets. The companies were given a deadline of Monday to comply.
What Is the ‘Most Favored Nation’ Policy?
Originally rolled out in Trump’s first term and blocked by federal courts, the MFN rule seeks to reduce U.S. drug prices to match the lowest prices charged in other developed nations. Trump recently revived the policy via executive order in May, instructing the Department of Health and Human Services (HHS) to craft rules enforcing MFN pricing and ordering the FDA to potentially revoke drug approvals for non-compliant medications.
Trump officials argue that this approach would drastically cut costs for American patients, particularly those not covered by insurance or public programs.
A White House spokesperson, Kush Desai, stated: “President Trump is doing more to lower health care costs than anyone else in Washington, DC.”
Industry Response: Resistance and Warnings
The pharmaceutical industry, led by the trade group PhRMA, has pushed back strongly. Critics argue that implementing international price controls would threaten innovation, reduce access to life-saving drugs, and force companies to raise prices abroad to compensate.
“Importing foreign price controls would undermine American leadership, hurting patients and workers,” said Alex Schriver, senior VP at PhRMA.
In anticipation of the TrumpRx platform, PhRMA launched its own initiative: AmericasMedicines.com, a site designed to connect patients with direct purchase programs already offered by drug companies. PhRMA noted that many manufacturers have begun offering transparent pricing for medications bought without insurance — aligning with Trump’s push for consumer-access models.
Direct-to-Consumer Model Gains Momentum
Trump’s push to create direct-purchase alternatives is gaining traction among pharmaceutical companies. For instance, Novo Nordisk now offers Ozempic, a diabetes drug that retails for nearly $1,000 per month, directly to consumers at $499 through its NovoCare Pharmacy.
Other drugmakers are experimenting with similar models, shipping medications to patients without involving traditional insurance channels — a strategy that appeals to cash-paying customers frustrated by high retail costs and opaque insurance markups.
Trade Tariffs and Global Implications
Adding economic pressure to the policy package, Trump is also moving forward with a 100% tariff on imported brand-name pharmaceutical products from countries without U.S.-based manufacturing plants. Imports from the European Union will face a 15% tariff under a separate trade agreement.
This policy — set to take effect the day after the TrumpRx announcement — is intended to coerce global drugmakers into either lowering U.S. prices or shifting production to American soil.
However, some industry analysts believe drugmakers may respond by raising prices in foreign markets rather than cutting prices at home. Recent examples include Eli Lilly increasing the UK price of Mounjaro to offset U.S. discounts and Bristol Myers Squibb aligning global pricing for schizophrenia drug Cobenfy.
Legal Challenges and Real-World Impact
While Trump continues to campaign on a promise to reduce drug prices by “1,500%,” legal and economic experts argue such claims are mathematically and politically unrealistic. Courts previously blocked Trump’s MFN rule due to procedural flaws, and experts believe the current White House still lacks legal authority to unilaterally enforce price mandates across the pharmaceutical industry.
Nevertheless, Trump’s announcements are having real-world ripple effects. Drug companies are bracing for regulatory action and preparing pricing models that can accommodate the political pressure without sacrificing profitability.
With the TrumpRx site set to go live, consumers may soon have access to a new avenue for purchasing essential medications — even if the long-term impact on overall pricing remains uncertain.
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