Trump Unveils ‘Most Favored Nation’ Deals with Nine Drug Firms to Cut U.S. Prices
In a significant move to address the rising prescription drug costs in the United States, President Donald Trump announced new “Most Favored Nation” (MFN) pricing agreements with nine pharmaceutical companies. This initiative is part of the administration’s ongoing effort to lower drug prices through voluntary agreements.
Overview of the Most Favored Nation Deals
The MFN program mandates that drug manufacturers sell their medications in the U.S. at prices that are competitive with the lowest prices available in other countries. This unveiling follows previously established agreements with five major drugmakers and highlights the administration’s focus on healthcare affordability.
Participating Pharmaceutical Companies
- Amgen
- Boehringer Ingelheim
- Bristol Myers Squibb
- Genentech
- Gilead
- GlaxoSmithKline (GSK)
- Merck
- Novartis
- Sanofi
These companies produce medications that are widely used to manage various health conditions, including cancer, diabetes, and cardiovascular diseases.
Details of the Agreements
Under these agreements, drug makers will sell medicines to Medicaid at MFN prices. Additionally, new medications introduced in the U.S. will also be priced under this system. Notably, the agreement facilitates direct sales of certain primary care and specialty medicines via the TrumpRx online platform, set to launch in January.
Investments and Contributions
The nine companies have pledged over $150 billion toward manufacturing and research developments in the U.S. In return, they will receive temporary relief from specific tariffs on pharmaceutical imports. Furthermore, several companies will contribute the necessary active pharmaceutical ingredients (APIs) for critical medications to a national emergency stockpile.
Impact and Skepticism
While Trump heralds these agreements as a step toward significant price reductions for Americans, experts express caution about their potential effectiveness. Currently, these agreements affect only a small fraction of the pharmaceuticals available in the market, raising questions about the anticipated benefits for the average consumer.
Market Dynamics and Pricing Concerns
Some analysts argue that the willingness of drugmakers to enter these agreements may not substantially impact their profit margins. For most consumers, obtaining medications through insurance may still be less expensive than through cash transactions on the TrumpRx platform.
However, for certain drugs, especially GLP-1 medications like Wegovy and Zepbound, which are not widely covered by insurance, direct-to-consumer pricing could offer more feasible options. Currently, the list prices for these medications range from $1,000 to $1,350, although direct consumer discounts may bring costs down to as low as $149 monthly.
As implementation proceeds, it remains to be seen how these pricing measures will reshape the pharmaceutical landscape and whether genuine cost relief will be realized by American consumers.
