Today, President Donald J. Trump announced a groundbreaking initiative aimed at reducing prescription drug prices for Americans. This initiative includes nine new agreements with major pharmaceutical companies to align drug prices with the lowest rates paid by other developed nations, a policy referred to as the most-favored-nation (MFN) price. The pharmaceutical manufacturers involved in this initiative are Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.
The agreements will significantly reduce prices for medications that treat a variety of costly and chronic conditions, including type two diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease (COPD), hepatitis B and C, human immunodeficiency virus (HIV), and certain types of cancer. This initiative will enable every State Medicaid program across the country to access MFN drug prices for products manufactured by the nine participating companies, ultimately leading to billions of dollars in savings.
These agreements are designed to ensure that foreign nations can no longer exploit price controls to benefit from American innovation. By guaranteeing MFN prices on all new innovative medicines launched by these nine companies, the initiative reinforces the commitment to help the most vulnerable populations in the U.S. Furthermore, these agreements mandate that the companies repatriate increased foreign revenues from existing products, a move that supports American patients.
One of the most significant aspects of this initiative is the introduction of TrumpRx, which will allow patients to purchase medications directly at drastically reduced prices. For example:
Amgen will lower the price of its cholesterol-lowering drug Repatha from $573 to $239.Bristol Myers Squibb will reduce the price of its HIV medication Reyataz from $1,449 to $217.Boehringer Ingelheim will cut the price of its diabetes medication Jentadeuto from $525 to $55.Genentech will reduce the price of its flu medication Xofluza from $168 to $50.Gilead Sciences will lower the price of its Hepatitis C medication Epclusa from $24,920 to $2,425.GSK will reduce prices for its inhaler portfolio, including the asthma inhaler Advair Diskus 500/50 from $265 to $89.Merck will cut the price of its diabetes medication Januvia from $330 to $100.Novartis will reduce the price of its Multiple Sclerosis medication Mayzent from $9,987 to $1,137.Sanofi will drastically lower the price of its blood thinner Plavix from $756 to $16 and offer insulin products at $35 per month’s supply.The pharmaceutical companies involved in these agreements are also committing to invest a collective total of at least $150 billion in U.S. manufacturing. This investment is crucial for reducing reliance on foreign nations and ensuring a stable supply of active pharmaceutical ingredients. As part of the agreement, several companies are donating key products to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR). For instance:
GSK will contribute 98.8 kg of albuterol, used in common asthma rescue inhalers.Bristol Myers Squibb will donate tablets of apixaban, totaling 6.5 tons, which is a critical blood thinner.Merck will provide 3.5 tons of ertapenem, an antibacterial medication used for complex infections.President Trump’s administration is fulfilling its promise to ensure that American patients no longer bear the burden of high drug prices that subsidize lower prices in other countries. Following an Executive Order signed on May 12, 2025, titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” the administration has taken decisive actions to align U.S. drug prices with those of comparable nations. Since September 30, 2025, President Trump has announced a total of 14 agreements with major pharmaceutical companies designed to provide substantial price relief for millions of Americans.
On December 1, 2025, an agreement was announced with the United Kingdom to increase the net price of new prescription drugs by 25% in the U.K., ensuring they contribute fairly for innovative medicines. This comprehensive approach not only supports American patients but also strengthens the overall health security of the nation.