Historic Drug Pricing Agreement Aims to End ‘Global Price Gouging’
In a high-stakes Oval Office announcement, President Trump unveiled a sweeping agreement with pharmaceutical giant Pfizer to dramatically lower drug prices for Medicaid—and revealed plans for a revolutionary consumer platform called TrumpRx that will let Americans buy medications directly from manufacturers, bypassing insurers and middlemen.
What’s in the Deal?
Under the agreement, Pfizer will:
- Price all new drugs in the U.S. at levels comparable to those in Europe
- Lower existing Medicaid prices to match rates in Canada, France, Germany, Italy, Japan, the U.K., Switzerland, and Denmark
- Offer direct-to-consumer discounts of up to 85% off list prices via TrumpRx
Infographic: Key Drugs Affected by the Deal
| Drug Name | Use | Available on TrumpRx? | Medicaid Price Cut |
|---|---|---|---|
| Eliquis | Blood thinner | Yes (with Bristol Myers Squibb) | Yes |
| Ibrance | Cancer treatment | No | Yes |
| Duavee | Menopausal hot flashes | Yes | Yes |
| Paxlovid | Covid antiviral | No | Yes |
TrumpRx: How It Works
Slated to launch in 2026, TrumpRx will function as a government-facilitated portal connecting patients directly to manufacturer pricing—similar to current models used by Eli Lilly and Novo Nordisk for weight-loss drugs like Zepbound and Wegovy. The goal: cut out pharmacy benefit managers (PBMs) who profit from inflated list prices.
Critics and Caveats
- Medicaid patients already pay little out of pocket—so savings may not be felt directly
- High-cost cancer and specialty drugs are largely excluded from TrumpRx
- Simultaneous 100% tariffs on some imported drugs could offset savings
[INTERNAL_LINK:prescription-drug-pricing-reform]
