In this articlePFEFollow your favorite stocksCREATE FREE ACCOUNTU.S. President Donald Trump announces a deal with Pfizer to lower Medicaid drug prices in the Oval Office of the White House on Sept. 30, 2025 in Washington, DC.Win McNamee | Getty ImagesPresident Donald Trump on Tuesday announced an agreement with Pfizer to voluntarily sell its medications for less, as his administration pushes to link U.S. drug prices to cheaper ones abroad.Pfizer has agreed to take measures to reduce U.S. drug prices, including selling its existing drugs to Medicaid patients at the lowest price offered in other developed nations, or what Trump calls the most-favored-nation price, according to the president. Pfizer will also guarantee the same “most-favored-nation” pricing on its new drugs for Medicare, Medicaid and commercial payers.As part of the deal, Pfizer has also agreed to a three-year grace period during which the company’s products won’t face pharmaceutical-specific tariffs – as long as the drugmaker further invests in U.S. manufacturing. The company plans to invest $70 billion to reshore domestic drug manufacturing and research facilities.Shares of Pfizer rose more than 4% on Tuesday after the announcement.”Pfizer has agreed to provide some of the most popular current medications to our consumers at heavily discounted prices anywhere between 50% and even 100%,” Trump said, adding that those drugs will be available for direct purchase at a discount online on a website the administration is calling TrumpRx.gov.Trump said he’s working with other drugmakers to secure similar agreements over the next week, adding that Pfizer is the first.”If we don’t make a deal, we’re going to tariff them,” he said of the other companies’ drugs.The White House confirmed with CNBC’s Eamon Javers that Eli Lilly is in negotiations with Trump for the next drug pricing deal, without providing further details on how far along talks are. The deal comes as Pfizer and 16 other drugmakers face Trump’s Monday deadline to take steps to lower drug prices, as outlined in letters from the president. Trump in May signed an executive order reviving a controversial plan, the “most favored nation” policy, that aims to tie the prices of some medicines in the U.S. to the significantly lower ones abroad.During the press conference, Pfizer CEO Albert Bourla said the company satisfied all four of the requests Trump outlined in his letter. Among the other steps is pursuing tougher price negotiations abroad and adopting models that sell its medicines directly to consumers or businesses.”The big winner clearly will be the American patients, there is no doubt,” Bourla said. “They are the ones that will see a significant impact on their ability to buy medicines.” But he said “American innovation and and the American economy” will also be “winners” with the agreement.Pfizer’s discounted drugsPfizer said it will offer a large share of its primacy care treatments and certain specialty branded drugs at discounts of 50% on average and up to 85%, according to a release from the company.In a separate statement Tuesday, Pfizer said more than 100 million patients are impacted by diseases those medicines treat, such as migraines, rheumatoid arthritis, menopause and atopic dermatitis.The company provided examples of discounted drugs under TrumpRx.gov. Duavee, a treatment for certain menopause symptoms, will be available for as little as $30 on the site, which is an 85% discount to its current price.Patients will also be able …
