HQ Team
October 1, 2025: Pfizer Inc., a US pharmaceutical company founded in 1849, has signed an agreement with the Trump administration to lower prices of prescription medicines in the North American nation.
The agreement follows a letter from the US President Donald Trump on July 31, asking 17 pharma companies to ensure Americans receive comparable drug prices to those available in other developed countries and pricing newly launched medicines at parity with other key developed markets, known as the most-favoured-nation (MFN) price.
The deadline for the response was September 29.
“We’ve agreed to a three-year grace period during which time Pfizer products under a Section 232 investigation won’t face tariffs, provided we further invest in manufacturing in the United States,” said Albert Bourla, Chairman and Chief Executive Officer of Pfizer.
TrumpRx.gov
Pfizer will participate in a direct purchasing platform, TrumpRx.gov, that permits American patients to purchase medicines from Pfizer at a significant discount, according to a statement.
A majority of the company’s “primary care treatments and some select speciality brands will be offered at savings that will range as high as 85% and on average 50%.”
According to a statement posted on White House’s website, the agreement will provide every state Medicaid program in the country access to most-favoured-nation (MFN) drug prices on Pfizer products.
“The agreement ensures foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Pfizer brings to market.
“The agreement requires Pfizer to offer medicines at a deep discount off the list price when selling directly to American patients,” according to the statement.
‘Certainty, stability’
Specific terms of the agreement remain confidential, according to Pfizer’s statement. Trump has called on pharmaceutical companies to invest more heavily in the US by threatening to impose significant tariffs on imported pharmaceuticals.
Bourla said Pfizer now had the “certainty and stability” that the company needed on two critical fronts of “tariffs and pricing, which have suppressed the industry’s valuations to historic lows.”
“We are committed to channelling unprecedented resources with an additional $70 billion dedicated to US research, development and capital projects in the next few years,” he said. Pfizer has invested more than $83 billion in American biotech innovation from 2018 to 2024.
“By working closely with the administration, we are lowering costs for patients and enabling greater investment in the US biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation.
“This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs,” Bourla said.
Atopic dermatitis, arthritis
Pfizer would now focus on delivering the next generation of cures in cancer, obesity, vaccines, and inflammation and immunology, according to the statement.
The medicines that benefit from the agreement include Eucrisa, a topical ointment for atopic dermatitis, which will be made available at an 80% discount to patients purchasing directly, according to the White House statement.
Xeljanz, a widely used oral medication for rheumatoid arthritis, psoriatic arthritis, and ulcerative colitis, will be available at a 40% discount to patients purchasing directly.
Zavzpret, a commonly utilised treatment for migraines, will be sold directly to patients at a 50% discount.
