On Tuesday, Sept. 30, U.S. President Donald Trump announced the launch of a new direct-to-consumer drug purchasing platform, “TrumpRx.” The website will allow Americans to buy certain prescription drugs at discounted prices directly from the manufacturers.
Pharmaceutical giant Pfizer has pledged to offer discounted medications on the site and has guaranteed that all new drugs launched in the U.S. will be sold at “Most Favored Nation (MFN)” prices.
MFN prices are determined by comparing American drug prices with other developed countries including Canada, United Kingdom, France, Germany, Italy, Japan, Denmark and Switzerland. The final price will then be negotiated with a goal to equalize drug costs between the United States and major developed countries.
Pfizer granted three-year tariff exemption in exchange for price cuts
President Trump explained that “Pfizer is committing to offer all of their prescription medications to Medicaid, and it will be at the most favored nation prices.” Reportedly, Pfizer will introduce new drugs at the same discounted rates.
In return, Pfizer will receive a three-year exemption from national security-related tariffs, provided it invests in pharmaceutical manufacturing within the United States. Following the announcement, Pfizer’s stock price rose by 6.1 percent.
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Pfizer CEO Albert Bourla was present at the Oval Office with Trump and other health officials when the president made the announcement. “It’s an historic day, because I think today we are turning the tide, and we are reversing an unfair situation,” Bourla said.
Bourla later announced on X: “Today I’m proud to join President Donald Trump at the White House to announce a landmark agreement that lowers drug costs for Americans and ensures the U.S. remains the global leader in biopharmaceutical innovation.”
“Americans will no longer carry the global burden of funding breakthroughs alone”, Bourla added.
Lowering drug prices has been a key focus for Trump. In July, he sent letters to pharmaceutical companies urging them to participate in the direct-to-consumer platform and offer MFN pricing, with a deadline for commitments set for Sept. 29.
About the TrumpRx platform
The TrumpRx platform will allow consumers to purchase medications directly from the government site using cash, with prices negotiated by the government. Senior officials indicated that the site is still under development and is expected to launch in early 2026 at TrumpRx.gov.
According to the White House, the platform will initially offer drugs such as Eucrisa (for dermatitis), Xeljanz (for rheumatoid arthritis), and Zavzpret (for migraines), though the total number of available medications has not been specified.
Under current regulations, pharmaceutical companies must provide Medicaid with the lowest price offered to any other payer. Pfizer noted that some terms of the agreement remain confidential.
It is still unclear whether the platform will benefit the majority of Americans who already have private insurance, Medicare, or Medicaid. Trump stated that Pfizer has agreed to offer some of its best-selling drugs at discounts ranging from 50 percent off to free.
Pfizer said that most essential treatment drugs and some specialty medications will be available on the platform, with average discounts of about 50 percent and up to 85 percent for certain products.
Senior officials added that consumers will be able to search for medications on the website and be redirected to the manufacturer’s direct sales page to complete their purchase.
Tariff threat spurs action
Recently, Trump announced that all branded drugs would face a 100 percent tariff if pharmaceutical companies did not manufacture in the United States. Pfizer CEO Albert Bourla admitted that this tariff threat prompted the company to act quickly.
Pfizer also announced a $70 billion investment in U.S. research, development, and drug manufacturing, and agreed to shift some production lines to the United States.
“President Trump is leveraging the power of the federal government to drastically cut drug prices for everyday Americans,” said White House spokesman Kush Desai.
According to White House data, the U.S. population accounts for less than 5 percent of the world’s total, but consumes about 13 percent of prescription drugs and shoulders more than 70 percent of global pharmaceutical profits.
FDA Commissioner Marty Makary stated that companies offering price discounts or moving production to the U.S. will be eligible for a new voucher program that accelerates drug approvals.
It is still not confirmed if any other big Pharma will follow the footsteps of Pfizer. But President Trump pledged that similar agreements with other drug makers would soon follow.
After the announcement, stock prices of other major Pharma companies with manufacturing facilities in the U.S. soared, including Merck (MRK), Bristol-Myers Squibb (BMS) and Eli Lily (LLY). The trend continued on Oct. 1.
