Trump Announces New Plan to Lower Prescription Drug Prices in the U.S.

U.S. President Donald Trump has announced new agreements with nine pharmaceutical companies aimed at reducing the cost of prescription medicines for Americans.

The deals, announced Monday, expand the Trump administration’s “Most Favored Nation” (MFN) pricing strategy, which seeks to bring U.S. drug prices closer to the lowest prices paid in other developed countries.

The companies involved are Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB.

Under the agreements, the companies will offer their medicines to state Medicaid programs at MFN prices, meaning prices will be aligned with what is charged in other wealthy countries.

The White House says the new agreements bring the total number of drugmakers participating in the administration’s MFN initiative to 26, covering about 89% of the branded drug market.

The administration’s goal is to reduce the gap between what Americans pay for prescription medicines and what patients pay in other developed nations.

The new agreements primarily affect Medicaid, the government health programme serving millions of low-income Americans. However, some of the participating companies have also announced lower prices or other commitments that could benefit U.S. consumers.

Several companies are also committing billions of dollars toward expanding manufacturing and research operations in the United States. Together, the new deals reportedly include around $19.6 billion in U.S. investments.

While the Trump administration has presented the agreements as a major breakthrough in lowering healthcare costs, some healthcare advocates argue that the impact could be more limited than advertised.

Medicaid already receives significant discounts on prescription medicines, meaning the new agreements may not translate into equally large savings for every patient or taxpayer.