President Donald Trump announced new agreements with nine pharmaceutical companies on Monday aimed at reducing prescription drug prices in the United States by aligning costs with those paid by other developed countries. The initiative, known as the Most Favored Nation program, follows previous deals with 17 major drugmakers, bringing the total number of participants to 26 companies, covering approximately 89 to 90 percent of the branded drug market.
The new agreements, involving companies such as Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB, commit to lowering prices on medications for conditions including hemophilia, Parkinson’s disease, glaucoma, liver disease, macular degeneration, skin ailments, and certain cancers. These reduced prices will be applied to state Medicaid programs and made available through a government platform, TrumpRx.gov. In exchange, participating companies receive tariff relief and other incentives.
President Trump emphasized that this approach represents the largest reduction in prescription drug costs in U.S. history, estimating that it will save Americans over $600 billion. He criticized both pharmaceutical companies and foreign countries for what he described as unfair pricing practices, asserting that although the U.S. accounts for only 13 percent of global drug consumption, it generates 75 percent of industry profits. He also claimed pressure from the program had met resistance from some industry players, although he did not provide specific details.
The administration has framed the agreements as a critical component of its healthcare agenda, seeking to address voters’ growing concerns over healthcare affordability ahead of the midterm elections. Polling data from June indicates healthcare costs remain the top economic worry for many Americans, surpassing expenses such as gasoline or housing.
While the federal data shows prescription drug prices fell by 2.7 percent over the 12 months ending in July— the largest annual decline on record— analysts have differed on the causes. The Trump administration credits the Most Favored Nation program with contributing to the price drop. However, some independent experts attribute the decline to measures initiated under the Biden administration and broader market factors, cautioning that Trump’s policy is not codified by Congress and could be reversed in the future.
The initiative has drawn mixed reactions from industry and advocacy groups. The pharmaceutical industry’s main lobbying organization, PhRMA, stated that pricing decisions are made individually by companies based on their specific circumstances and patient populations. Public Citizen, a watchdog group, criticized the program as a distraction from more comprehensive efforts to lower drug prices. Conversely, some conservative health policy analysts have praised the program’s role in enhancing competition and expanding avenues for purchasing medicines.
Additionally, several companies participating in Monday’s announcement pledged donations to the U.S. government’s strategic reserve of active pharmaceutical ingredients, aiming to bolster national drug supply security.