Pfizer to cut US drug prices in Trump administration deal
Pfizer and the Trump administration have struck a deal to make prescription drugs cheaper for Medicaid patients in the US.
The company will now sell its meds to federal and state Medicaid programs at prices tied to those charged in several other wealthy countries.
In return, Pfizer avoids tariffs on imported medicines for three years.
New site to offer discounts on certain drugs
Starting in 2026, a new government site called TrumpRx will offer direct-to-consumer discounts on certain drugs.
Pfizer also promised to price new medicines in line with international rates.
They get a three-year break from certain tariffs as part of the deal.
What's the impact?
Medicaid is less than 5% of Pfizer's US business, so most people won't see immediate changes—but this is the first time a major drugmaker has agreed to presidential pricing demands tied to trade threats.
Some industry insiders are uneasy about Pfizer going solo, while officials say they're trying to keep meds affordable without hurting innovation or jobs.
Potential shift in drug pricing negotiations
This move could set a new trend: instead of industry-wide deals, drug pricing might be negotiated company by company.
For now, it only impacts Medicaid and direct sales—but it hints at bigger reforms ahead for how Americans pay for medicine.