US President Donald Trump has announced a deal with pharmaceutical giant Pfizer to lower the cost of its prescription medication for low-income Americans under the Medicaid program. The agreement, signed on Tuesday, commits Pfizer to selling its existing drugs at prices offered in other developed nations and launching new drugs at similar prices in the US.
As part of the deal, Pfizer will also invest $70 billion in domestic manufacturing facilities, marking a significant step by a top drug maker to boost US production. The investment is expected to be dedicated to research, development, and capital projects over the next few years.
Under the agreement, consumers are not expected to see lower prices until 2026, according to senior administration officials. However, Pfizer has committed to offering discounts through its new website, TrumpRx, which allows people to buy drugs directly from manufacturers. Discounts on these treatments will average around 50%.
The deal builds on an executive order signed by Trump in May, requiring drug makers to electively lower prices or face limits on government payments. Trump has been pushing for lower drug prices and increased US manufacturing for months, and recently announced plans to impose tariffs on imported pharmaceutical products unless manufacturers build plants in the US.
Pfizer’s products include COVID-19 vaccine Comirnaty, antiviral treatment Paxlovid, and several cancer drugs, making it one of the largest US drug makers.
Source: https://www.aljazeera.com/economy/2025/10/1/pfizer-strikes-deal-with-trump-administration-to-cut-us-drug-prices