WASHINGTON ‒ President Donald Trump announced a deal with Pfizer for the drugmaker to voluntarily sell medications through Medicaid at lower prices, as his administration pushes to bring down drug prices in the United States to match prices in other countries.

The White House also said it plans to unveil a new website, dubbed TrumpRx, to allow direct-to-consumers sales of drugs.

Trump, in a Sept. 30 announcement from the Oval Office, said all new Pfizer medications introduced to the U.S. market will be sold at prices that are no greater than those of comparable countries. The agreement follows an executive order Trump signed in March that instituted a "most favored nation" policy for drug pricing.

"We'll be paying essentially what other countries are paying," Trump said, adding that he's working with other major pharmaceutical companies to reach similar agreements. "By taking this bold step, we're ending the era of global price-gouging at the expense of American families and we're making America healthy again."

Pfizer is prepared to invest $70 billion in U.S. manufacturing and research over the coming years. In exchange, the Trump administration agreed to three-year grace period in which Pfizer will not be subject to Trump's tariffs on pharmaceutical products.

The TrumpRx website is expected to be operating by early 2026, according to a senior Trump administration official. A statement from Pfizer said the domain will be TrumpRx.gov. Consumers will be able to type in the name of a drug they want to purchase at the website, which will then redirect them to a site where they can buy the drug from the manufacturer, the official said.

The official added that negotiations could drive drug prices lower for Medicaid, the federal-state public health insurance program.

Trump has long argued the United States is getting ripped off by paying higher drug prices than many nations despite leading the world in medical innovation. He said his administration plans to launch an investigation on "unfair and discriminatory trade practices" of other countries he said shifts the cost burden of pharmaceutical drugs to Americans.

Drug prices in the United States are nearly three times higher than 33 comparison countries such as the United Kingdom, France, Germany and Canada, according to a 2024 report from the Health and Human Services department. About 67 million Americans are enrolled in Medicare.

Pfizer CEO: 'We are reversing an unfair situation'

The White House said Americans will begin to see lower prices on prescription drugs purchased through Medicaid in early 2026. Officials project the cost of Eucrisa to treat dermatitis is expected to drop by 80%; Duavee to treat post-menopausal osteoporosis by 85%; Zavzpret for migraines by 50%; and Xeljanz to treat rheumatoid arthritis by 40%.

"Today, we are turning the tide, and we are reversing an unfair situation," Pfizer CEO Albert Bourla said. "For years, other rich nations refused to pay their fair share for the medical innovation, and as a result, Americans had to assume disproportional cost themselves."

Bourla said Trump's looming tariffs on drug imports "motivated" Pfizer to secure the agreement with the Trump administration. Trump last week announced a new round of tariffs beginning in October 2025 imposing a 100% duty on brand name drugs imported to the United States.

"The big winner of this deal, clearly, will be the American people," Bourla said. "But I would argue that it is not the only winner. I think who else is a winner here is American innovation and the American economy."

Drug companies have no limits when setting prices for brand-name drugs, but the amount consumers pay typically depends on negotiations hashed out with insurers and pharmacy benefit managers. Insurance plan requirements such as copays and deductibles − the amount a consumer must pay before coverage kicks in − also impacts how much you will pay.

Most working-age Americans get health insurance and prescription drug coverage from their employer. Consumers who purchase Affordable Care Act insurance – as well as older adults and low-income families enrolled in government health insurance programs Medicare and Medicaid – typically get drug discounts through their insurance coverage.

Uninsured Americans, however, often must pay for prescriptions with their own money, but pharmaceutical companies typically offer patient-assistance programs that are based on a person’s income.

Patients for Affordable Drugs Now Executive Director Merith Basey said she was encouraged to see Trump take on drug prices. However, she said key questions include which drugs will be included, how much will consumers pay at the pharmacy counter and how long will the program last.

"Make no mistake, drug companies set the launch prices of drugs and are the primary reason patients struggle to afford their prescriptions," Basey said. "These deals are a step forward, but only comprehensive, enforceable systemic reforms, like Medicare negotiation, will tackle the root cause of high drug prices.”

Former President Joe Biden also sought to lower drug prices for older adults on Medicare.

Under Biden's 2022 climate and health legislation, the Inflation Reduction Act, Medicare was empowered to negotiate prices with pharmaceutical companies on a limited number of medications. For example, Biden administration in 2024 bargained for lower prices on 10 widely prescribed drugs such as Xarelto or Eliquis, which will take effect in 2026.

Before Biden left office in January, Medicare announced it would seek to negotiate lower list prices for the blockbuster diabetes and weight loss drugs Ozempic and Wegovy and 14 other medications, a cost-saving move that would take effect in 2027.

Reach Joey Garrison on X @joeygarrison.

This article originally appeared on USA TODAY: Trump announces deal with Pfizer to lower drug prices, unveils 'TrumpRx' website

Reporting by Joey Garrison and Ken Alltucker, USA TODAY / USA TODAY

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