President Trump has achieved what decades of politicians couldn’t—forcing Big Pharma to slash drug prices for Americans by implementing “most-favored-nation” pricing that ties U.S. costs to the lowest prices charged worldwide. This groundbreaking achievement, secured through agreements with nine pharmaceutical giants, marks the first comprehensive international reference pricing system in American healthcare history, delivering massive savings and expanded coverage for high-cost medications like Ozempic and Eliquis.
Story Highlights
- Nine major pharmaceutical companies agreed to cut Medicaid drug prices to match lowest international rates
- Diabetes and obesity drugs like Ozempic dropped from $1,000+ to $350 monthly through TrumpRx platform
- Medicare beneficiaries get $50 co-pays for weight-loss medications with expanded coverage for first time
- Bristol Myers Squibb will provide blood thinner Eliquis free to entire Medicaid program
Historic Pharmaceutical Industry Agreements Deliver Savings
Trump announced groundbreaking agreements with nine pharmaceutical giants—Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi—to implement most-favored-nation pricing across U.S. public programs. These companies committed to reducing Medicaid drug prices to match their lowest charges in other developed countries, marking the first comprehensive international reference pricing system in American healthcare history.
The deals represent a fundamental shift from America’s historically hands-off approach to drug pricing, where pharmaceutical companies routinely charged Americans significantly more than patients in countries with government-negotiated rates. This achievement demonstrates Trump’s business acumen in pressuring an industry that has long exploited American patients and taxpayers through inflated pricing schemes.
🚨 BREAKING: In a MASSIVE development for affordability, President Trump has just got 9 of the largest pharma companies in the world to AGREE to offer their flagship drugs at heavily discounted, most favored nations prices.
"Whatever it sells for across the world, the lowest… pic.twitter.com/bHnuwIE0Qy
— Eric Daugherty (@EricLDaugh) December 19, 2025
Massive Reductions Target High-Cost Medications
Eli Lilly and Novo Nordisk agreed to slash prices on blockbuster diabetes and obesity medications that have strained family budgets and government programs. Ozempic and Wegovy prices plummeted from approximately $1,000 and $1,350 monthly to $350 through the new TrumpRx platform. Medicare prices for these medications, plus Mounjaro and Zepbound, dropped to $245—less than half what the Biden administration proposed.
State Medicaid programs gain access to these life-changing medications at the $245 price point, providing relief to low-income Americans who previously faced impossible choices between health and financial survival. Medicare will cover obesity medications Wegovy and Zepbound for the first time, with beneficiaries paying just $50 monthly co-pays instead of crushing out-of-pocket costs.
Strategic Implementation Protects American Interests
Trump’s approach goes beyond simple price cuts by securing long-term commitments that benefit American workers and national security. Eli Lilly and Novo Nordisk pledged to guarantee most-favored-nation pricing on all future medications while repatriating foreign revenues and making substantial U.S. manufacturing investments. Companies like Merck, GSK, and Bristol Myers Squibb agreed to donate significant pharmaceutical ingredients to a national reserve for emergency medications.
The TrumpRx platform launches in early 2026, enabling Americans to purchase medications directly from manufacturers at discounted rates up to 50% below current prices. This bypasses the complex insurance and pharmacy benefit manager systems that have enriched middlemen while gouging patients. Bristol Myers Squibb’s commitment to provide Eliquis free to Medicaid demonstrates how tough negotiation can force corporations to prioritize American patients over profit margins.
Watch the report: Trump Announces Major Drug Price Cuts With Nine Pharmaceutical Companies At White House Briefing
Sources:
FACT SHEET: President Donald J. Trump Announces Major Developments in Bringing Most-Favored-Nation Pricing to American Patients
Trump announces lower drug price deals with 9 pharmaceutical companies
Trump, nine pharmaceutical companies strike deal to cut prices | Reuters
