Last week, the Trump administration and Pfizer announced what the drugmaker called a “landmark agreement to lower drug costs.” Now that the dust has settled and the terms of the deal are coming into focus, many experts agree on three points.
First, the Trump administration secured a political win. Second, Pfizer made limited concessions while avoiding a potential tariff hit. And third, some of the deal’s main components, including TrumpRX, a direct-to-consumer sales website, and the “most favored nation” (MFN) pricing for Medicaid patients may only meaningfully reduce drug prices for a narrow group of patients.
What’s less clear is how a push to get Pfizer and other drugmakers to align U.S. drug prices with what other nations pay will play out.
Under the deal announced at the end of September, Pfizer agreed to price newly launched medicines in line with…