Pfizer slashes US drug prices by 50% under TrumpRx deal
Pfizer is dropping prices on many of its everyday meds by about 50% thanks to a new government-backed platform called TrumpRx.
The deal aims to bring new medicine launch prices and Medicaid patient prices in the US in line with those in other developed countries.
The deal also promises that new medicines will launch at international price levels, and Medicaid patients get these lower rates too.
Pfizer's stock rises as tariff worries ease
In exchange for slashing prices, Pfizer gets a three-year break from possible tariffs—as long as it keeps investing in American manufacturing.
After the news broke, Pfizer's stock climbed about 4%, showing investors liked the relief from tariff worries and pricing pressure.
The company says it plans to boost its US investments under this agreement.
TrumpRx deadline looms for drugmakers
This all comes after President Trump set a deadline in late July for drugmakers to respond by September 29, 2025: lower your drug prices or face tariffs.
The administration is using executive power and trade tools to push down pharma costs, and similar deals with other drugmakers are likely coming soon.