The Trump administration announced on Friday that it had secured deals to lower drug prices in collaboration with nine major drugmakers, including Amgen (AMGN), Bristol-Myers Squibb (BMY), and GSK (GSK). Each company agreed to lower prices on a majority of medications sold through Medicaid and to sell some drugs directly to consumers on the TrumpRx website.
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“Starting next year, American drug prices will come down fast and furious and will soon be among the lowest in the developed world,” Trump said in the Oval Office on Friday.
Pharma Firms Secure Tariff Relief in Exchange for Price Cuts
Furthermore, the nine companies agreed to invest $150 billion in U.S. manufacturing and research and development. In exchange, the group will be exempt from Trump’s tariffs for three years.
Earlier this year, President Trump sent letters to 17 leading pharmaceutical companies, pressuring them to lower prices in line with most-favored-nation (MFN) prices. An MFN price refers to the lowest price paid for a drug among comparable developed countries. Since then, 14 of the 17 companies have agreed to lower prices.
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