Trump announces new deal with pharma companies to cut drug prices

So far 14 of the 17 of largest pharmaceutical companies have agreed to lower US drug prices.Published On 19 Dec 2025United States President Donald Trump announced new agreements aimed at lowering prescription drug prices.On Friday, alongside leaders from Bristol Myers Squibb, Gilead Sciences, and Merck, among other leading pharma giants, the president announced deals that would cut prices on their medications to match that of the developed nation with the lowest price.Recommended Stories list of 4 itemslist 1 of 4BP taps Woodside’s Meg O’Neill as CEO as it pivots back to fossil fuelslist 2 of 4Trump Media to merge with nuclear fusion company to power AIlist 3 of 4Instacart settles Federal Trade Commission’s claim it deceived US shopperslist 4 of 4‘Highly speculative’ that Trump’s new fuel rules will help drivers: Expertsend of list“Starting next year, American drug prices will come down fast and furious and will soon be some of the lowest in the developed world,” Trump said.“This is the biggest thing having to do with drugs in the history of the purchase of drugs.”Under the deals, each drugmaker will cut prices on some of the drugs sold to the Medicaid programme for low-income people, senior administration officials said, promising “massive savings” on widely used medicines without giving specific figures.“We were subsidising the entire world. We’re not doing it anymore,” Trump said at a White House news conference, flanked by nine pharma executives.Mehmet Oz, the director of the Centres for Medicare and Medicaid Service, said Regeneron, Johnson & Johnson, and AbbVie would visit the White House after the holidays for the launch of the government’s TrumpRx website.US patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere.The details of each deal were not immediately available, but officials said they included agreements to cut cash-pay direct-to-consumer prices of select drugs sold potentially through the TrumpRx.gov website, to launch drugs in the US at prices equal to – not lower than – those in other wealthy nations and to increase manufacturing. In return, companies can receive a three-year exemption from any tariffs.