Pfizer strikes deal with US to lower drug prices

At an event in the Oval Office, Pfizer announced that it will lower prescription drug costs for American patients and increase its investment in US research and development by $70 billion in the coming years,  securing a three-year exemption from potential Section 232 tariffs. 

“This landmark agreement is a win for American patients, a win for American leadership, and a win for Pfizer,” said Pfizer CEO, Alber Bourla. “By working with the Administration, we are lowering costs while ensuring the U.S. remains the world’s leading engine of medical breakthroughs.”

Under the deal, Pfizer has committed to align US drug prices more closely with those in other developed countries and to launch new medicines at comparable international rates.

The “voluntary” agreement is the first to come as a result of Trump’s letter to 17 pharmaceutical companies on 31 July; where he threatened manufacturers that if companies refused, “to step up”, the federal government would “deploy every tool in our arsenal to protect American families from continued abusive drug pricing practices.”

The company will participate in a new federal purchasing platform, TrumpRx.gov, that gives patients direct access to many Pfizer medicines at discounts averaging 50% and reaching as high as 85%. The specific terms remain confidential. The platform is planned for early 2026 and will not sell or distribute medications, but will direct customers to direct-to-consumer sales.