On December 19, 2025, President Donald J. Trump announced nine agreements with major pharmaceutical companies aimed at reducing prescription drug prices for American patients. The agreements will align U.S. drug prices with the lowest prices paid by other developed nations, a practice known as most-favored-nation pricing. This initiative is expected to lower costs for numerous medications that treat chronic conditions, such as diabetes and cancer, while ensuring that Medicaid programs across all states benefit from these reductions.

Each of the nine pharmaceutical manufacturers involved in the agreements will implement significant price reductions on key drugs, with some prices dropping by over 80%. Patients will see notable savings through direct purchases facilitated by TrumpRx, a program designed to improve access to affordable medications. Additionally, these companies are committing to invest at least $150 billion in U.S. manufacturing, aimed at enhancing domestic capabilities and reducing reliance on foreign suppliers.

This announcement builds on previous initiatives by President Trump to address high prescription drug prices, including an Executive Order issued in May 2025. The administration has engaged in multiple agreements with pharmaceutical manufacturers to ensure fair pricing and protect American innovation in drug development. This ongoing effort is part of broader U.S. healthcare reform aimed at providing substantial price relief for millions of American patients.

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