Trump Secures Big Pharma Deals: Lower Drug Prices for Medicaid and Consumers

President Trump and nine pharmaceutical companies have reached agreements to lower drug prices for Medicaid and some cash payers, aiming to align U.S. medication costs with those in other developed nations. The deals involve major pharmaceutical firms and promise significant savings for widely used drugs.

In a significant move announced on Friday, U.S. President Donald Trump and nine major pharmaceutical firms, including Bristol Myers Squibb and Gilead Sciences, have agreed to cut drug prices for the Medicaid program and cash payers. This initiative seeks to bring U.S. drug costs in line with other wealthy countries.

Under these agreements, companies like Merck, Novartis, and GSK are set to reduce prices for a wide range of drugs. The deals promise 'massive savings,' though specifics remain undisclosed. The agreements aim to lower U.S. medication prices, which are notably higher than in peer nations.

As part of the arrangement, drugmakers like Merck will offer significant discounts on medications such as their diabetes drug Januvia, and potentially new drugs pending FDA approval. The deals also guarantee investment in U.S. manufacturing and a fast-tracked drug approval process.

(With inputs from agencies.)