President Donald Trump on Tuesday announced a deal with Pfizer to sell its drugs at lower prices to Medicaid patients.
Pfizer will now sell some drugs on a “direct to consumer” website called “TrumpRx,” which would be operated by the federal government.
The deal struck between the Trump administration and Pfizer will give the pharmaceutical manufacturer a three-year grace period on Trump’s planned tariffs on pharmaceuticals made outside the country, which will take effect Wednesday.
NBC News reported:
The agreement on lower prices will cover “a large majority” of Pfizer’s primary care medicines, along with speciality brand-name drugs, which will be offered at discounts averaging 50% and reaching as high as 85%, a spokesperson for the company said.
That includes Pfizer’s menopause drug Duavee, which will be available for as little as $30 — an 85% reduction, the spokesperson said. The overactive bladder drug Toviaz will drop 85% to $42, while its skin ointment Eucrisa will see an 80% cut to $162.
A senior Trump administration official explained that they hope to launch TrumpRX by “early 2026.”
More pharmaceutical companies have opted to sell directly to consumers. For instance, Ozempic manufacturer Novo Nordisk and Zepbound maker Eli Lilly have launched websites to sell their drugs to consumers, cutting out the middlemen.
“This is a really big announcement. This is something that most people said was not doable,” Trump said.
A 2022 Kaiser Family Foundation (KFF) survey found that three out of four American adults believe that medications are too expensive, NBC said.
In May, the president signed an executive order which directed federal officials to tie the dollar amount the government pays for drugs to the cost of the drug overseas.
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