Washington, D.C. — Nine of the world’s largest pharmaceutical companies have agreed to comply with President Donald Trump’s revived “most favored nation” (MFN) drug pricing policy, a move the White House says will sharply reduce prescription drug costs for Medicare recipients.
According to senior administration officials, Amgen, Boehringer Ingelheim, Bristol Myers Squibb, Genentech, Gilead Sciences, GSK, Merck & Co., Novartis, and Sanofi have signed voluntary agreements to align certain U.S. drug prices with the lowest prices those companies charge globally. Trump said Johnson & Johnson is expected to join the program next week.
The agreements follow a May executive order directing the Department of Health and Human Services to implement direct-to-consumer purchasing options for drugs sold at MFN prices. Administration officials claim the policy could lower costs by 30% to 80% for some medications. A 2024 RAND Corporation study found U.S. prescription drug prices are nearly three times higher than those paid overseas, with brand-name drugs exceeding four times the cost.
Several participating companies will also donate months’ worth of medications or active pharmaceutical ingredients to the Strategic Active Pharmaceutical Ingredients Reserve for emergency use. The administration says some drugs will be sold through a forthcoming direct-purchase platform, TrumpRx, though injectable and infusion medications will be excluded due to clinical safety concerns.
Industry trade group PhRMA has criticized MFN pricing in the past, arguing pharmacy benefit managers drive high consumer costs. The White House counters that the U.S. market’s dominance gives it leverage to reset global pricing norms.
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