Trump announces deal with nine pharmaceutical companies to lower drug prices

President Donald Trump said Friday that his administration has struck a deal with nine pharmaceutical companies that is expected to lower prescription drug prices.

The deal is in response to letters Trump sent to the leaders of 17 major drugmakers in July, urging them to offer most-favored-nation prices to Medicaid. Five of those leaders have already agreed to cut some of their prices.

The new deals were signed by Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead, GSK, Merck, Novartis and Sanofi, according to POLITCO. 

“As of today, 14 out of the 17 largest pharmaceutical companies ... have now agreed to drastically lower drug prices for … the American people and the American patients,” Trump said at an event. “This represents the greatest victory for patient affordability in the history of American health care, by far, and every single American will benefit.”

The deals mean that the companies will not face Trump's pharmaceutical tariffs for three years if they invest more in U.S. manufacturing.

The three holdouts remaining are Johnson & Johnson, AbbVie and Regeneron, according to CNBC, but Johnson & Johnson is expected to meet with the Trump administration next week.

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.