- Pfizer is expected to announce a deal to lower its drug prices for Medicaid.
- The agreement is part of the White House’s push for “Most Favored Nation” pricing, aligning U.S. drug costs with those in other wealthy countries.
- Pfizer’s stock rose over 4% following news of the negotiations.
- This follows an earlier executive order pressing for voluntary price cuts from pharmaceutical companies, with a set deadline for deals.
- President Trump plans to implement 100% tariffs on imported patented drugs unless companies build manufacturing plants in the U.S. by October 2025.
President Donald Trump is expected to announce a new pricing agreement with Pfizer that would see the drug manufacturer voluntarily reduce the prices of its medications for Medicaid recipients. The announcement is scheduled for later today as part of the administration’s ongoing efforts to lower prescription drug costs in the United States.
According to a report by The Washington Post citing unnamed sources, the deal would require Pfizer to offer its medicines at discounted rates under Medicaid. This move aligns with the White House initiative known as “Most Favored Nation” pricing, which seeks to tie U.S. drug prices to those in wealthier countries where costs are typically lower.
News of the negotiations contributed to a more than 4% increase in Pfizer shares during morning trading. The company has been a focus of attention among investors in response to expectations of imminent policy changes impacting the pharmaceutical sector.
The deal follows an executive order issued in May, which aimed at securing price reductions from major pharmaceutical manufacturers. The deadline for such agreements passed on Monday, with ongoing discussions reported between government officials and drug makers.
Industry group Pharmaceutical Research and Manufacturers of America responded to administration proposals by announcing voluntary measures to assist Americans in comparing more affordable options, including the launch of a new website designed for price comparison.
In related policy measures, President Trump recently stated plans to impose a 100% tariff on imported branded or patented pharmaceuticals unless manufacturers are actively building drug production facilities in the U.S. “Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” he said in a post on social media.
Trump has argued that U.S. drug prices are disproportionately high, continuing advocacy for aggressive pricing reforms and new trade measures for pharmaceuticals, heavy trucks, and furniture.
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