Trump's Big Pharma Shake-Up: Major Drug Price Cuts for Medicaid Announced

The Trump administration and nine major pharmaceutical companies announced agreements to significantly reduce drug prices for the Medicaid program and cash payers. This initiative aims to align U.S. drug costs with other affluent countries, providing savings for widely used medications.

The U.S. government under the leadership of President Donald Trump has struck significant deals with nine prominent pharmaceutical companies to lower drug prices for Medicaid and cash payers. The announcement, aimed at aligning American drug costs with those seen in other developed nations, was made at a White House press conference.

Companies like Bristol Myers Squibb, Gilead Sciences, and Merck have agreed to substantial price cuts, with reported discounts reaching up to 70% off list prices. This collaboration removes the immediate threat of tariffs for the companies over the next three years, while Trump's administration promotes the initiative as a step toward reducing the financial burden on U.S. patients.

Despite initial fears of sweeping price controls, the specifics of these new deals have calmed investor worries, resulting in rising shares for most of the involved drugmakers. The agreements promise significant investment in U.S. research and development, and facilitate lower drug costs for cash-pay consumers via the new TrumpRx website.

(With inputs from agencies.)