Trump Administration and Pfizer Strike ‘Most Favored Nation’ Drug Price Deal
On September 30, 2025, the Trump administration announced a groundbreaking agreement with Pfizer to implement 'most favored nation' (MFN) drug pricing in the US134.
The deal sets American prices for Pfizer drugs at levels matching the lowest paid by other developed nations, marking the first MFN arrangement with a major pharmaceutical company13.
Every state Medicaid program gains access to these reduced MFN drug prices for Pfizer products1.
Pfizer will offer medicines directly to American patients at significant discounts off their list prices through a new website, TrumpRx, as part of the deal1.
The TrumpRx platform will allow direct-to-consumer sales at discounted rates, and Pfizer has confirmed its participation1.
PhRMA, representing the broader pharmaceutical industry, is responding by launching its own direct-to-consumer site (AmericasMedicines.com) in January and investing $500 billion in US infrastructure1.
The deal increases pressure on other pharmaceutical companies to adopt similar pricing mechanisms and has sparked debate within the industry2.
The executive order underpinning the agreement calls for drug makers to provide Medicaid patients with the lowest international costs and prohibits offering better prices to other developed countries compared to the US13.
Sources:
1. https://www.aha.org/news/headline/2025-09-30-administration-announces-agreement-pfizer-lower-drug-costs
2. https://www.axios.com/2025/10/01/pfizer-trump-deal-drug-companies
3. https://becarispublishing.com/digital-content/blog-post/trump-administration-announces-first-most-favored-nation-drug-pricing-deal-pfizer
4. https://www.pharmacytimes.com/view/pfizer-agrees-to-lower-certain-drug-prices-in-us-aligning-with-most-favored-nation-plan