Trump Negotiates Major Drug Price Cuts with Pharmaceutical Giants

U.S. President Donald Trump and nine major pharmaceutical companies have negotiated deals to significantly reduce drug prices for the government's Medicaid program and cash payers. These agreements aim to align U.S. drug costs with those in other wealthy nations by offering substantial discounts off list prices.

In a significant development, U.S. President Donald Trump on Friday secured agreements from nine leading pharmaceutical companies to reduce drug prices, primarily for the government's Medicaid program and cash payers. This move is a strategic effort to bring American drug prices in line with those of other affluent countries.

Major players like Bristol Myers Squibb, Gilead Sciences, Merck, and Roche's U.S. unit Genentech have consented to cut prices, joined by Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK. While many of these companies already provide substantial market discounts, the new agreements are expected to offer additional significant reductions—up to 70% off list prices.

Under the deals, drugmakers will adjust prices on most medications sold to Medicaid, which caters to low-income individuals. Trump's strategy has alleviated investor fears of price controls, and the agreements will help drugmakers avoid tariffs for the next three years. The TrumpRx website will guide consumers toward discounted options.

(With inputs from agencies.)