Pfizer to offer cheaper drugs via Trump's website

September 30, 2025

The Trump administration has announced a deal with Pfizer to offer prescription drugs at significantly discounted prices through a new government-operated website called TrumpRx. Under the agreement, Pfizer will reduce prices on some medications by up to 85% and lower prescription drug prices for the Medicaid program, allowing the company to avoid recently announced import tariffs. This arrangement comes after President Trump imposed a 100% levy on branded drug imports effective October 1st and sent letters to 17 pharmaceutical companies demanding lower prices.

Who is affected

Medicaid recipients (low-income Americans)
American prescription drug consumers
Pfizer (as a pharmaceutical company)
Other pharmaceutical companies facing potential tariffs
Insurance companies and middlemen in the pharmaceutical supply chain
Potentially foreign consumers who may see price increases abroad

What action is being taken

The federal government is developing the TrumpRx direct-to-consumer website to sell discounted medications
Pfizer is reducing prices for some medicines by up to 85% on the TrumpRx platform
Pfizer is lowering prescription drug prices for the Medicaid program
Pfizer is investing an additional $70 billion in U.S. manufacturing, research and development
The Trump administration is implementing tariffs on branded or patented drug imports

Why it matters

The deal aims to reduce prescription drug costs for Americans, particularly those on Medicaid
It represents a significant change in pharmaceutical pricing models
It could lead to similar agreements with other drug manufacturers
The approach may shift costs to foreign markets as companies like Eli Lilly plan to raise prices abroad
Pfizer's stock rose nearly 7% following the announcement, indicating market approval
It provides Pfizer with "certainty and stability" regarding tariffs and pricing according to their CEO

What's next

The TrumpRx website is expected to launch in early 2026
More deals with other drug manufacturers are expected to be announced
No explicit next steps stated in the article

Read full article from source: BBC