Us President Donald Trump has announced new agreements with 14 leading pharmaceutical companies aimed at cutting US prescription drug prices by matching them to the lowest rates found in other developed nations. The initiative includes discounts for medications sold through Medicaid and the creation of a new federal website, TrumpRx.gov, scheduled to launch in early 2026.
At the core of the plan is the “most favored nation” rule, which requires the US to pay the same price as the country with the lowest global rate for certain drugs. The administration projects savings ranging from 59% to more than 700% on select medications.
Major companies such as Bristol Myers Squibb, Gilead Sciences, Merck, and Roche’s US unit Genentech, Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK will take part in the deal.
Participation in the program is voluntary. Companies joining the effort will receive a three-year exemption from potential tariffs on imported pharmaceuticals in exchange for investing in U.S. research, development, and manufacturing.
Drugs expected to see major price cuts include Eucrisa (80% reduction), Xeljanz (40%), and Zavzpret (50%). As part of one deal, Eliquis, a widely used blood thinner, will be provided free to Medicaid.
The new agreements mainly benefit Medicaid and cash-paying consumers, with prices for most privately insured and Medicare-covered drugs remaining largely unchanged.
According to media reports, Indian pharmaceutical companies are closely watching how the most favoured nation (MFN) pricing model will be implemented in the US, as it could affect the prices of branded and generic drugs alike. These firms play a vital role in supplying affordable, off-patent medicines to American consumers and have made major investments to meet US regulatory standards.
