US President Donald Trump announced on Tuesday that Pfizer will invest $70 billion in research, development, and domestic manufacturing while also lowering prices on several medications sold in the United States.
According to a White House official, Pfizer will become the first pharmaceutical company to reach a deal under Trump’s “most favored nation pricing” policy, which requires drugmakers to match US drug prices with those paid overseas. The president had earlier written to 17 leading pharmaceutical firms, demanding binding commitments to reduce drug costs by September 29.
As part of the agreement, Pfizer will begin selling select drugs directly to consumers through a new government-backed website, TrumpRx, which is set to be launched soon. The initiative is expected to provide Americans with direct access to discounted medicines.
Health Secretary Robert F. Kennedy Jr. confirmed last month that the US government had been holding one-on-one talks with drugmakers, while Commerce Secretary Howard Lutnick had raised the possibility of tariffs on the pharmaceutical industry as a negotiating tool.
Pfizer has not yet issued a public comment on the announcement.