President Donald Trump announced Thursday that nine major pharmaceutical manufacturers have agreed to adopt Most Favored Nation (MFN) pricing for select Medicaid and flagship medicines and to list eligible drugs on TrumpRx.gov, a new direct-to-consumer portal slated to debut in early 2026.
The announcement highlighted a sharp price reduction for a Sanofi blood thinner, which Trump said would fall from $750 to under $16 per dose under the arrangement. Participating companies also pledged more than $150 billion in domestic manufacturing investments, framed by the administration as a national-security measure.
The nine manufacturers are Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.
What Is TrumpRx and How It Works
According to the administration, TrumpRx.gov will function as a central directory. Users search for a prescription and are redirected to the manufacturer’s website to purchase cash-pay medicines at MFN benchmark prices—defined as the lowest net prices charged in peer countries such as Canada, the UK, and Germany after discounts.
For Medicaid, MFN benchmarks will apply automatically. The model bypasses insurance intermediaries, allowing consumers to buy directly from manufacturers.
.@POTUS: “The companies assembled in this room have agreed to offer all of their drugs to Medicaid at Most Favored Nation pricing… and they will list their most popular drugs at https://t.co/zuvcoQ69Ub.” pic.twitter.com/5Fg5HmzXo8
— Rapid Response 47 (@RapidResponse47) December 19, 2025
Trump said the voluntary pacts deliver what he called “the biggest thing having to date in the history of the purchase of drugs,” tying compliance to tariff exemptions and commitments to API stockpiles for emergencies.
Most Favored Nation Pricing: What It Means
Under MFN terms described by officials, U.S. prices are capped near the second-lowest country-specific net rate among wealthy nations, adjusted for GDP. In exchange, manufacturers receive predictable Medicaid volume and three-year tariff shields.
The administration said it revived a first-term executive order demanding price parity or penalties, adding that 14 of 17 companies contacted in July have now agreed. Future launches, officials said, would aim to start at MFN levels across Medicare, Medicaid, and cash-pay markets.
CMS head Dr. Mehmet Oz praised the approach as helping families who struggle to afford medicines for cancer, diabetes, and respiratory conditions.
Industry Impact and Timeline
Participating firms unlock plans for $150B+ in U.S. factory investments, while avoiding certain import duties. A preview of TrumpRx.gov has appeared previously; officials say full operations are expected in January, with broader listings and state integrations following, ahead of a wider 2026 rollout.
The White House argues the model delivers immediate relief by bypassing PBMs. Critics have questioned long-term R&D impacts, while the administration points to direct access and immediate price cuts.
Talks with additional companies—including AbbVie, Johnson & Johnson, and Regeneron—were described as ongoing.
What Trump Said About the Name
On Friday, Trump said the TrumpRx name “was not my idea,” adding he was “honored” by it, as he unveiled the agreements aimed at aligning U.S. prices more closely with those paid in Europe.
