On Friday, December 19, 2025, President Donald Trump will announce new agreements with major pharmaceutical companies, addressing one of the most serious issues for American families. These agreements aim at lowering drug prices, building on continuing efforts to bring U.S. drug prices closer to those of other developed nations. The White House stated that the announcement will take place, highlighting the administration’s commitment to healthcare affordability.
Keeping a Promise on Drug Prices
Americans have long faced high drug prices, often paying significantly more for the same medications available at lower costs abroad.Trump has often pointed out that Americans pay far more for the same drugs available cheaper in other countries. In response, the administration introduced a “most-favored-nation” (MFN) pricing approach, ensuring that Americans receive the same favourable agreements that foreign governments negotiate.
This strategy began earlier in 2025, with an executive order and letters written to 17 major drugmakers in July encouraging them to give MFN prices to programs such as Medicaid and to limit new medication launch prices at levels found in other high-income nations.So far, five companies – Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono (the U.S. branch of Germany’s Merck KGaA) have negotiated agreements to provide discounts and invest in American manufacturing.
The upcoming announcement is intended to build on this success, delivering relief to millions of people who are burdened by high drug prices.
Major Drugmakers Joining the Effort
According to sources, several well-known corporations will participate in Friday’s deals. AbbVie, Bristol Myers Squibb, Gilead Sciences, and Merck are among the companies preparing to announce price cuts on specific drugs. As previously reported by Bloomberg News, Swiss pharmaceutical titans Novartis and Roche (via its US business Genentech) are also expected to participate.
These agreements usually entail lowering drug prices for government programs, particularly Medicaid, in exchange for benefits like tariff exemptions and faster approvals. Previous participants, for example, have promised billions of dollars in investments in the United States, improving domestic jobs and supply chains.
Companies like Bristol Myers Squibb, Gilead, and the White House have yet to comment publicly, while AbbVie and Merck have declined to do so. Novartis pointed out ongoing discussion and a commitment to finding solutions that save patients money, while Roche has expressed support for cutting medicine costs while encouraging global innovation rewards. From the initial list of 17 including Sanofi, Regeneron, Johnson & Johnson, Amgen, Boehringer Ingelheim, and GSK are still in talks, implying that more announcements may follow.
What This Means For Healthcare Affordability
American households are burdened by high medicine prices, which frequently cause patients to skip doses or treatments. These voluntary most-favored-nation (MFN) agreements encourage affordable healthcare by providing greater discounts without imposing new requirements.
Medicaid already secures significant discounts (sometimes over 80% on some drugs), but recent agreements offer additional discounts for those in need.
Immediate larger impacts on Medicare or private insurance may be minor, but ongoing agreements, such as Pfizer’s expected 2026 margin reductions from discounts, indicate potential industry-wide changes.
President Trump’s approach clearly addresses the obvious price gap Americans pay significantly more for the same medicines that are cheaper abroad. Through incentives and agreements, it promotes practical pricing.
What This Means and the Challenges Ahead
These claims show a sensible, incentive-driven approach to lowering medicine costs, avoiding the risks of strong regulation, which initially scared markets. Positive stock reactions to previous transactions indicate reasonable terms for the industry.
Rebates, intermediaries, and global dynamics continue to be major challenges. Medicaid’s scope is limited in comparison to Medicare or commercial insurance, but multiple agreements have the potential to push broader change. Platforms such as TrumpRx.gov provide direct access to discounted drugs, hence increasing affordable healthcare,
Final Thoughts
As more pharmaceutical firms sign on to these most-favored-nation accords, consumers can expect major savings on out-of-pocket costs for essential medications. With high medicine prices a constant worry for many families forcing skipped doses or treatments this initiative is both timely and essential.
These voluntary agreements advance lowering drug prices through targeted discounts and incentives, while promoting healthcare affordability without broad mandates that could stifle innovation. Though full impacts on Medicare and private insurance will unfold over time, the growing commitments signal meaningful change ahead.
Ultimately, this approach delivers practical relief, ensuring Americans get fairer prices on the drugs they need most, a clear step toward easing financial burdens for millions.
