Trump Unveils Major Plan for Most-Favored Nation Drug Pricing in U.S.
President Donald J. Trump has unveiled a significant initiative aimed at reducing prescription drug prices in the United States. The announcement involves nine agreements with major pharmaceutical companies to align drug pricing with the lowest prices offered by other developed nations, a strategy known as the most-favored-nation (MFN) price.
Key Pharmaceutical Companies Involved
- Amgen
- Bristol Myers Squibb
- Boehringer Ingelheim
- Genentech
- Gilead Sciences
- GlaxoSmithKline (GSK)
- Merck
- Novartis
- Sanofi
Impact on Drug Prices
The agreements target a variety of drugs used to treat chronic conditions such as diabetes, rheumatoid arthritis, and multiple sclerosis, among others. By ensuring that every state Medicaid program in the U.S. can access MFN prices from these companies, billions of dollars in savings are expected.
Some specific price reductions include:
- Amgen’s cholesterol drug Repatha: from $573 to $239
- Bristol Myers Squibb’s HIV drug Reyataz: from $1,449 to $217
- Boehringer Ingelheim’s diabetes medication Jentadeuto: from $525 to $55
- Genentech’s flu medication Xofluza: from $168 to $50
- Gilead Sciences’ Hepatitis C drug Epclusa: from $24,920 to $2,425
- GSK’s asthma inhaler Advair Diskus 500/50: from $265 to $89
- Merck’s diabetes medication Januvia: from $330 to $100
- Novartis’ MS drug Mayzent: from $9,987 to $1,137
- Sanofi’s blood thinner Plavix: from $756 to $16
- Sanofi’s insulin products listed at $35 per month’s supply
Investments in U.S. Manufacturing
The pharmaceutical companies involved have also pledged to invest at least $150 billion in U.S. manufacturing. This includes donations to the Strategic Active Pharmaceutical Ingredients Reserve (SAPIR) to ensure a stable supply of essential medications, reducing dependence on foreign sources.
Contributions include:
- GSK: 98.8 kg of albuterol
- Bristol Myers Squibb: 6.5 tons of apixaban
- Merck: 3.5 tons of ertapenem
A Commitment to Lower Drug Prices
President Trump’s administration is focused on ensuring that American patients do not bear the burden of subsidizing lower drug prices in other countries. This commitment began with the Executive Order titled “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” signed on May 12, 2025.
Future Steps and Agreements
Since that time, Trump has initiated multiple agreements aimed at aligning U.S. drug prices with international benchmarks, bringing considerable relief to American consumers. Notably, an agreement with the United Kingdom announced on December 1, 2025, will enhance the pricing structure for new prescription drugs, ensuring fair compensation for innovative therapeutic options.
This major plan marks a crucial step towards improving healthcare affordability and accessibility for American patients, positioning the U.S. pharmaceutical landscape for long-term benefits.
