US President Donald Trump announced a series of new agreements with major pharmaceutical companies aimed at reducing prescription drug prices across the country. During a White House event on Friday, Trump called the initiative the largest effort in US history to lower drug costs, pledging that starting next year, American patients will pay some of the lowest drug prices in the developed world.

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Key Pharma Companies Involved

The announcement was made alongside executives from leading companies including Bristol Myers Squibb, Gilead Sciences, Merck, Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and Amgen. So far, 14 of the 17 largest pharmaceutical companies have signed agreements to participate in the program, with commitments to reduce prices on select medications sold to the Medicaid program for low-income Americans.

Trump emphasized:

“Starting next year, American drug prices will come down fast and furious and will soon be some of the lowest in the developed world. This is the biggest thing having to do with drugs in the history of the purchase of drugs.”

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How the Deals Will Work

The agreements include multiple measures:

• Cutting cash-pay, direct-to-consumer prices of select drugs.
• Launching new drugs in the US at prices equal to those in other developed nations.
• Increasing domestic manufacturing and R&D investment, with companies pledging more than $150 billion for US production and research.
• Offering companies a three-year exemption from certain tariffs in exchange for participation.

Officials also noted that a portion of foreign revenue from the companies’ international sales will be redirected to help offset US costs.

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Examples of Drug Price Reductions

• Merck: Its diabetes drugs Januvia, Janumet, and Janumet XR will be offered directly to consumers at roughly 70% off list prices. Merck’s experimental cholesterol drug enlicitide may also be sold directly to patients under the FDA’s fast-track pathway.
• Amgen: Expanding its direct-to-patient program to include migraine drug Aimovig and rheumatoid arthritis drug Amjevita, offering both at $299 per month, representing discounts of 60–80% below current US list prices.

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TrumpRx Website and Access

US patients will be able to access participating medications through the upcoming TrumpRx.gov platform, aimed at providing transparent pricing and easier access to affordable drugs.

Mehmet Oz, director of the Centers for Medicare and Medicaid Services (CMS), confirmed that companies such as Regeneron, Johnson & Johnson, and AbbVie will join the launch after the holidays.

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Background: Rising US Drug Costs

The US continues to have some of the highest prescription drug prices in the developed world, often nearly three times higher than in other wealthy nations with government-run healthcare systems. Trump has repeatedly pressured pharmaceutical companies to match international pricing standards.

Analysts note that while Medicaid already enjoys significant discounts—sometimes exceeding 80%—the new agreements extend price reductions to direct-to-consumer patients, potentially generating massive savings for everyday Americans.

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Investments and Strategic Contributions

Pharma companies have also committed to:

• Investing in US-based R&D and manufacturing.
• Donating drug ingredients to the US strategic reserve to prepare for shortages.

Trump emphasized that the deals will ensure fair pricing while continuing to support innovation and domestic production.

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Market Reaction

Initially, the prospect of tighter price controls spooked investors, but the structured deals and voluntary agreements have calmed market fears. Analysts highlighted that the agreements are designed to reduce costs without jeopardizing research investment or drug availability.