US consumers don’t expect to start seeing low prices based on Pfizer transactions until 2026.
Released on October 1, 2025
US President Donald Trump has announced an agreement with US drug manufacturer Pfizer to reduce the costs of prescription drugs in the Medicaid program for low-income Americans.
According to a transaction signed by the Trump administration on Tuesday, Pfizer has agreed to sell existing drugs to Medicaid patients at the lowest prices offered in other developed countries, and has also pledged to launch new drugs at the same prices as other high-income countries.
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Research shows that US customers pay more than three times as much as branded medicines in other wealthy countries.
The company has also agreed to the US administration joining a new website called Trumprx. This allows people to purchase medicines directly from the manufacturer. Pfizer said many of its treatments will be offered through its platform at an average discount of 50%.
The Pfizer deal was built on an executive order signed in May, setting deadlines for drug makers to lower prices or face new restrictions on what the government pays. Trump said deals with other pharmaceutical companies will arrive next week.
Consumers are not expected to start seeing low prices based on Pfizer transactions until 2026, he told the Associated Press news agency.
In addition to cutting costs, Trump said Pfizer agreed to spend $70 billion on domestic manufacturing facilities and be the latest in a string of top drugmakers announcing plans to build production in the US.
The White House did not immediately release any details about the investment, but Pfizer said in a statement that the spending will be dedicated to US research, development and capital projects over the next few years.
For months, Trump has spoken about the need to lower drug prices and boost US drug manufacturing. On September 25th, he announced that he would impose a 100% tariff on imports of branded or patented drugs from October 1st, unless drug manufacturers build manufacturing plants in the United States.
As one of the largest drug manufacturers in the United States, Pfizer’s products include Covid-19 vaccine Comil Nati, antiviral treatment Paxlovid, and several cancer drugs.
