In this articlePFEFollow your favorite stocksCREATE FREE ACCOUNTPresident 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.Trump said he’s working with other drugmakers to secure similar agreements. 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.Pfizer CEO Albert Bourla was in attendance. In a statement Tuesday, Pfizer confirmed it had reached a drug pricing deal with Trump. U.S. President Donald Trump speaks during a press conference in the Roosevelt Room at the White House in Washington, D.C., U.S., May 12, 2025. Nathan Howard | ReutersThe agreement also involves a three-year reprieve on planned pharmaceutical tariffs as long as the company is building manufacturing plants in the U.S., a source told CNBC’s Angelica Peebles.Shares of Pfizer rose more than 3% on Tuesday after the report.Trump in May signed an executive order reviving a controversial plan, the “most favored nation” policy, that aims to slash drug costs by tying the prices of some medicines in the U.S. to the significantly lower ones abroad.The deal comes as drugmakers brace for Trump’s planned tariffs on pharmaceuticals imported into the country.This is breaking news. Please refresh for updates. …
