The administration has secured an agreement with Pfizer to lower U.S. drug prices by matching the lowest cost among other developed nations. The deal includes a new direct-to-consumer website, TrumpRx, but key details on implementation remain unclear.
Sep 30, 2025
Source:
Houston Public Media
White House Unveils New Drug Pricing Plan
The Trump administration has announced a major initiative aimed at lowering prescription drug costs for Americans. The plan centers on a “most-favored-nation” (MFN) policy, designed to ensure the U.S. pays no more for pharmaceuticals than other developed countries.
According to a White House fact sheet, the executive order mandates that drug manufacturers offer Medicaid programs prices that match the lowest in any peer nation. This represents a significant shift in U.S. pharmaceutical pricing strategy.
Key Components of the Initiative
MFN Pricing: The core of the policy requires drug makers to align U.S. prices with the lowest price paid in other developed countries.
TrumpRx Website: A new direct-to-consumer (DTC) platform, TrumpRx, will be launched to sell drugs at deep discounts directly to patients.
Trade Policy Levers: The administration may use trade policy to pressure other nations to raise their drug prices, with the stated goal of funding lower prices in the U.S.
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Source:
AP News
Pfizer, Industry Respond to Policy Shift
Pfizer has become the first major pharmaceutical company to officially partner with the administration on this initiative. The company agreed to provide MFN pricing for all state Medicaid programs.
Pfizer will also offer its discounted drugs through the new TrumpRx website, marking a significant step toward a direct-to-consumer model.
PhRMA Announces Separate Plan
In a related development, the Pharmaceutical Research and Manufacturers of America (PhRMA) announced its own initiative. The industry group is launching AmericasMedicines.com in January for direct drug purchases.
PhRMA also pledged a $500 billion investment in U.S. infrastructure, though details of the plan remain sparse. Other drug manufacturers were given a deadline of September 29, 2025, to respond to the administration's executive order, with further negotiations expected.
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Source:
The New York Times
