In a significant move aimed at lowering healthcare costs, President Donald Trump has announced that nine additional major pharmaceutical manufacturers have signed onto his flagship prescription drug pricing initiative. The scheme, which mandates offering American customers the same prices paid in foreign countries, now includes fourteen of the world's largest drug firms.
Major Pharma Firms Commit to Lower Prices and US Investment
Speaking from the White House on Friday 19 December 2025, President Trump declared the agreements a historic victory for patient affordability. The new signatories are Amgen, Boehringer Ingelheim, Bristol-Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis, and Sanofi. They join Pfizer, AstraZeneca, and EMD Serono, who committed earlier this year.
A senior administration official stated that, alongside the price reductions, the companies have collectively pledged $150 billion in new investments for manufacturing and research and development within the United States. Furthermore, the firms will return a portion of their foreign revenue to help offset costs for American patients.
Launch of Trump Rx Portal and Strategic Reserve Donations
Central to the plan is the 'Trump Rx' website, scheduled to go live next month, where Americans will be able to access the lower-cost prescriptions. The administration's 'Most Favoured Nation' pricing model is specifically designed to aid low-income Americans and those on Medicaid, who will be among the first to benefit.
In a related move to bolster national health security, several companies will donate ingredients to the government's Strategic Active Pharmaceutical Ingredients Reserve. Merck will donate a six-month supply of the antibiotic Ertapenem, Bristol Myers Squibb will contribute the blood thinner Apixaban (Eliquis), and GSK will provide the asthma medication Albuterol. The companies have also agreed to convert these raw ingredients into finished medications during emergencies.
Realisations of a Long-Standing Policy Goal
This announcement marks the culmination of a policy President Trump first championed during his previous term, which was initially blocked by legal challenges. After returning to office, he revived the plan via an executive order in May 2025, followed by direct letters to drug companies in July.
The President has frequently criticised the disparity where Americans "pay massively higher prices than other nations for the same exact pill", accusing the industry of subsidising lower prices abroad. The new agreements promise substantial savings; for example, the monthly cost of the weight-loss drug Wegovy is expected to fall from $1,350 to $250, while Zepbound would drop from $1,080 to $346.
Administration officials hailed the deals as a fundamental shift, ending an era where American families subsidised global drug costs and rebuilding the nation's pharmaceutical independence.
