Trump announces new agreements with drug manufacturers to lower drug costs, increasing US investment
‘The Big Money Show’ panel discusses President Donald Trump’s push to grow the economy by 2026 as inflation slows, wages rise and taxes bring in billions in revenue.
President Donald Trump announced Friday that his administration has reached new deals with the world’s largest drug manufacturers aimed at lowering prescription drug costs for Americans.
Speaking from the Roosevelt Room, Trump revealed that nine more drugmakers have agreed to the administration’s plan to meet nationwide tariffs, bringing the total to 14 of the world’s 17 largest drug companies.
The agreement reached with the nine companies also includes $150 billion in new combined commitments to invest in domestic manufacturing, research and drug development.
“For the American people and patients, this represents the greatest victory for patient access in the history of American health care,” Trump said. “Until now, and every American will benefit.”
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US President Donald Trump announces an agreement with Pfizer to lower Medicaid drug prices in the Oval Office of the White House on September 30, 2025 in Washington, DC. (Wina McNamee/Getty Images/Getty Images)
Friday’s announcement included deals with Amgen, Boehringer Ingelheim, Bristol-Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi—showing a successful deal between manufacturers and the Trump administration.
In July, Trump wrote letters to the leaders of 17 major drug manufacturers seeking an agreement to keep drug costs for those enrolled in the federal Medicaid health program lower than in high-income countries.
A number of signatories have now agreed to donate active pharmaceutical ingredients to America’s Strategic Active Pharmaceutical Ingredients Reserve (SAPIR SAPIR) to assist in the country’s disaster response to potential outbreaks, natural disasters or national security emergencies.
“This is what, to a large extent, national security is,” Trump said. “You can’t keep paying 13, 14 times more than other countries and think you’re going to be safe.”
Earlier, Pfizer, AstraZeneca and Serrano, Novo Nordisk and Lilly had signed agreements with the Trump administration to keep drug prices under control for low-income Americans.
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The logo of Swiss drugmaker Novartis is seen at the cell and gene therapy company’s new factory in Stein, Switzerland, November 28, 2019. (REUTERS/Arnd Wiegmann/File Photo/Reuters)
Trump has often made prescription drug costs a focus of his administration’s efforts, often focusing on the disparity between prices in the US and other wealthy countries, with analysts noting Medicaid—which covers 10% of the country’s drug costs—has benefited from significant rebates for manufacturers, in accordance with Reuters.
“Every president in a generation has promised to lower drug prices, but they’ve been slow to talk,” Trump said. “I’m the only one of them who has even thought about favorite nations, and that’s what this is. … Now we’re ‘the most favorite nation.’
“I would also like to thank the leaders of all countries who have to pay a little so that we can be treated properly. I really do,” he continued. “They knew that the alternative was not the alternative because if they didn’t, we would charge them tariffs, and the tariffs would be very difficult … As soon as they became aware of tariffs, they did it very easily.”
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Health and Human Services Sec. Robert F. Kennedy described the deal as “historic,” noting that his 29-year-old Democratic son called to tell him it was “the best achievement that could happen to our country.”
“This is something that Bernie Sanders has been crying out for, for 25 years,” Kennedy said. “[Something] Elizabeth Warren has always wanted to [and former President] Joe Biden promised the American people. [Former] President Obama [and former] President Clinton all promised to do this for the American people. … Everyone saw how wrong this was. We were paying for all the new things in this country, and the whole world was getting into it for free. “
“I am very grateful to all the CEOs who saw sense in this, who understand the injustice and the system of not keeping, and who put public health, especially the public health of the American people, before some of their priorities. They all came to the table,” he added. “I can tell you, by the end of this period … Americans will be paying the lowest price in the world for 95% of drugs. …
Trump also announced a new administration website, TrumpRX.govwill be introduced early next year in an effort to lower prescription drug prices for Americans. The message on the site’s listing currently reads, “Coming soon. January 2026.”
