• Trump announces Pfizer will cut drug prices and offer Medicaid access to heavily discounted prescriptions.
• The new TrumpRx website will enable direct purchases of medications, potentially at discounts of 50-85%.
• Pfizer commits to invest $70 billion in U.S. manufacturing and research to support the initiative.
• Trump aims to ensure U.S. drug prices align with those in other high-income countries under the "Most Favored Nation" policy.
• Further deals with additional pharmaceutical companies are expected in the coming weeks.

On September 30, President Donald Trump announced a significant agreement with pharmaceutical giant Pfizer, which will lower the prices of prescription drugs for Medicaid patients and ensure that new medications are priced equally to those offered in other high-income nations. This move is part of a broader initiative to reduce healthcare costs for low-income Americans, as Trump emphasized during a press briefing, stating, "It's going to have a huge impact on bringing Medicaid costs down like nothing else," according to Reuters.

The Trump administration plans to launch a direct-to-consumer website named "TrumpRx," designed to facilitate online prescription purchases, allowing consumers to obtain medications at discounted rates. Chris Klomp, Director of Medicare, noted that prices on the site would show savings of up to 80% compared to current rates, as mentioned by Business Insider and Reuters.

Underpinning the agreement is Pfizer's promise to invest $70 billion into U.S. manufacturing, facilitating a stronger domestic production framework. This commitment was paired with significant stock price increases for Pfizer and other related pharmaceutical firms, as noted by Channel News Asia and Los Angeles Times.

Trump's "Most Favored Nation" pricing strategy aims to compel drug manufacturers to align U.S. prices with those found abroad, with the president previously comparing the U.S. drug pricing model to that of other countries, highlighting discrepancies and higher costs for American consumers. He indicated he expects more pharmaceutical companies to sign similar agreements shortly. A White House spokesperson mentioned that "Pfizer is the first company to announce a deal," reflecting progress toward comprehensive price reductions in the industry, according to South China Morning Post and The Hill.

Anticipation builds around the TrumpRx website, set to launch in early 2026, offering a platform aimed at lowering direct medication costs for Americans, though uncertainties remain regarding its practical impact on the broader healthcare system, highlighted by ABC News.