President Donald Trump unveiled on Friday, December 19, 2025, a series of ‘Most Favored Nation’ pricing agreements with nine pharmaceutical giants, marking a significant step in his administration’s campaign to lower prescription drug costs for Americans. The deals, announced at a White House event, aim to align U.S. drug prices with the lowest rates available in other developed countries and include commitments for new investments and emergency medical supplies.
The nine companies—Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi—collectively produce hundreds of medications used by millions of Americans to treat conditions such as cancer, diabetes, autoimmune disorders, and heart disease. Under the voluntary agreements, they will sell their drugs to Medicaid programs at MFN prices and launch any new medications in the U.S. at this benchmark price point, affecting commercial insurance, Medicare, and cash-paying markets.
A centerpiece of the announcement is the TrumpRx online platform, scheduled to launch in January 2026, which will allow consumers to purchase drugs directly from manufacturers at discounted rates. For instance, Merck will reduce the price of its diabetes drug Januvia to $100 from $330, while Gilead will offer its Hepatitis C medication Epclusa for $2,425 instead of $24,920. Similarly, GSK will make its asthma inhaler Advair Diskus available for $89, down from $265, providing potential savings for those without insurance or with high deductibles.
Beyond pricing, the drugmakers have agreed to invest more than $150 billion in new U.S. manufacturing projects and research and development, receiving a three-year tariff reprieve on pharmaceutical imports in return. Several companies, including Bristol Myers Squibb, Merck, and GSK, will also donate active pharmaceutical ingredients for critical medications like blood thinners, antibiotics, and rescue inhalers to a national emergency stockpile established during Trump’s first term, enhancing preparedness for public health crises.
Trump administration officials hailed the deals as a transformative shift, with one senior official stating that MFN pricing has gone from ‘a bold policy to an industry standard’ in record time. The president emphasized that the agreements were secured through pressure, including threats of tariffs, to compel companies to ‘do the right thing’ and address the high cost of drugs that has long burdened American patients.
However, health policy experts express skepticism about the real-world impact of these agreements. Chris Meekins, a managing director at Raymond James, noted that the deals are ‘largely inconsequential’ to drugmakers’ profit margins and may only benefit a small subset of patients, particularly those who can afford to pay cash. The TrumpRx portal, while helpful for some, is unlikely to significantly reduce costs for the majority of Americans who rely on insurance, where pricing dynamics are more complex.
The announcement comes amid broader concerns over rising healthcare costs, with Trump also revealing plans to meet with health insurers in the coming weeks to push for lower premiums. This move is timed as enhanced subsidies under the Affordable Care Act are set to expire, potentially leading to higher insurance costs for many Americans. Industry groups like AHIP have expressed willingness to collaborate but emphasized that premiums reflect underlying medical costs.
Looking forward, the success of these initiatives in meaningfully lowering drug prices and improving access will depend on continued enforcement and expansion to more companies. While the deals represent a political victory for Trump and could provide some relief, their long-term effectiveness in making healthcare more affordable remains uncertain, requiring ongoing scrutiny and potential policy adjustments.
