Trump To Announce New Deals To Lower Drug Prices

Summary:

Trump is expected to announce on Friday new agreements aimed at lowering prescription drug prices.

U.S. President Donald Trump is expected to announce on Friday new agreements aimed at lowering prescription drug prices, the White House said.

The announcement is scheduled for 1 p.m. ET at the White House.

AbbVie (ABBV.N), opens new tab, Bristol Myers Squibb (BMY.N), opens new tab, Gilead Sciences (GILD.O), opens new tab, and Merck (MRK.N), opens new tab are among major drugmakers expected to announce deals to cut prices on some medicines, according to sources familiar with the matter.

Swiss drugmakers Novartis (NOVN.S), opens new tab and Roche (ROG.S), opens new tab are also expected to participate, Bloomberg News reported earlier this week. Reuters previously reported that AbbVie was among the companies involved.

In July, Trump sent letters to leaders of 17 major pharmaceutical companies, outlining how they should provide so-called most-favored-nation prices to the U.S. government's Medicaid health program for low-income people, and guarantee that new drugs will not be launched at prices above those in other high-income countries.

So far five companies have struck deals with the administration to rein in prices. They are Pfizer, Eli Lilly (LLY.N), opens new tab, AstraZeneca (AZN.L), opens new tab, Novo Nordisk (NOVOb.CO), opens new tab and EMD Serono, the U.S. division of Germany's Merck KGaA (MRCG.DE), opens new tab.

The remaining 12 are Sanofi (SASY.PA), opens new tab, Regeneron (REGN.O), opens new tab, Merck (MRK.N), opens new tab, Johnson & Johnson (JNJ.N), opens new tab, AbbVie (ABBV.N), opens new tab, Amgen (AMGN.O), opens new tab, Gilead (GILD.O), opens new tab, Boehringer Ingelheim, Bristol Myers (BMY.N), opens new tab, GSK (GSK.L), opens new tab, Novartis, and Genentech, Roche's U.S. unit.

Bristol Myers, Gilead and the White House did not immediately respond to requests for comment. AbbVie and Merck declined to comment.

Novartis has said it is in discussions with the Trump administration and is committed to finding solutions that lower costs for Americans. Roche said it supported Trump's goal of reducing the cost of drugs and encouraged other countries to reward biopharmaceutical innovation.

Trump has long focused on the disparity between drug prices in the U.S. and other wealthy countries, which have government-run health systems that negotiate price discounts.

The specter of tighter price controls by the U.S. government initially spooked investors, but terms of the deals announced so far calmed many of those fears.

Analysts have noted that Medicaid, which accounts for only around 10% of U.S. drug spending, already benefits from substantial price discounts, exceeding 80% in some cases.

Pfizer, which announced its 2026 financial outlook on Tuesday, said the Medicaid discounts would result in price and margin compression next year.

Source: Reuters

Risk Warnings and Investment Disclaimers

You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.

Quick Access to 7x24

Quick Access to More Editor-selected Real-time News