Pfizer Reaches Landmark Agreement with U.S. Government to Lower Drug Costs for American Patients

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09/30/2025 - 12:45 PM

Voluntary agreement meets the President’s four requests while also protecting the U.S. ecosystem responsible for America’s leadership in delivering medical breakthroughs
Agreement provides certainty from tariffs and clarity on pricing framework that furthers Pfizer’s ability to expand investment in U.S.-based innovation and return manufacturing to the U.S.
Pfizer to fully focus on delivering the next generation of cures, especially in cancer, obesity, vaccines, and inflammation and immunology
Pfizer CEO Albert Bourla joins President Donald J. Trump and members of his Administration in White House event today

NEW YORK--(BUSINESS WIRE)-- Pfizer Inc. (NYSE: PFE) today announced a historic agreement with the Trump Administration that will ensure U.S. patients pay lower prices for their prescription medicines while strengthening America’s role as the global leader in biopharmaceutical innovation.

In response to the four points covered in the President’s July 31^st letter, Pfizer has voluntarily agreed to implement measures designed to ensure Americans receive comparable drug prices to those available in other developed countries and pricing newly launched medicines at parity with other key developed markets. Pfizer will also participate in a direct purchasing platform, TrumpRx.gov, that will allow American patients to purchase medicines from Pfizer at a significant discount. The large majority of the Company’s primary care treatments and some select specialty brands will be offered at savings that will range as high as 85% and on average 50%.

Specific terms of the agreement remain confidential.

“We are proud to join President Trump at the White House to celebrate this landmark agreement that is a win for American patients, a win for American leadership, and a win for Pfizer,” said Albert Bourla, Chairman and Chief Executive Officer of Pfizer. “By working closely with the Administration, we are lowering costs for patients and enabling greater investment in the U.S. biopharmaceutical ecosystem by ending the days when American families alone carried the global burden of paying for innovation. This is about putting all patients first and ensuring America remains the world’s leading engine of medical breakthroughs.”

Dr. Bourla continued, “We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows.

We've agreed to a three-year grace period during which time Pfizer products under a Section 232 investigation won't face tariffs, provided we further invest in manufacturing in the United States. Additionally, we've established a balanced global pricing approach that continues to recognize the value of innovation while ensuring prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations.

This agreement allows us to invest even more boldly in the United States – fueling growth, creating jobs, and returning manufacturing home. Our U.S. workforce of 31,000 colleagues, supported by 13 manufacturing and distribution sites and 7 major R&D facilities, underscores Pfizer’s vital role in building a stronger American economy.

We are committed to channeling unprecedented resources with an additional $70 billion dedicated to U.S. research, development and capital projects in the next few years. This builds upon our more than $83 billion investment in American biotech innovation from 2018-2024, showing how we are strengthening our commitment at this pivotal moment by shaping the future of medicine with the pursuit of pioneering breakthroughs and ensuring the U.S. remains the global hub for medical progress and improving lives.”

With this agreement in place, Pfizer can fully focus on delivering the next generation of cures, sharpening its focus in the areas where the company’s science, scale and agility can make the biggest difference for patients in areas like oncology, obesity, vaccines, and inflammation and immunology.

About Pfizer: Breakthroughs That Change Patients’ Lives

At Pfizer, we apply science and our global resources to bring therapies to people that extend and significantly improve their lives. We strive to set the standard for quality, safety and value in the discovery, development and manufacture of health care products, including innovative medicines and vaccines. Every day, Pfizer colleagues work across developed and emerging markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. Consistent with our responsibility as one of the world's premier innovative biopharmaceutical companies, we collaborate with health care providers, governments and local communities to support and expand access to reliable, affordable health care around the world. For 175 years, we have worked to make a difference for all who rely on us. We routinely post information that may be important to investors on our website at www.Pfizer.com . In addition, to learn more, please visit us on www.Pfizer.com and follow us on X at @Pfizer and @Pfizer News , LinkedIn , YouTube and like us on Facebook at Facebook.com/Pfizer .

Disclosure Statement

The information contained in this release is as of September 30, 2025. Pfizer assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.

This release contains forward-looking information about, among other things, Pfizer’s voluntary agreement with the U.S. Government designed to lower drug costs for U.S. patients, include Pfizer products in a direct purchasing platform, and reflect Pfizer’s plans to expand investment in U.S.-based innovation and return manufacturing to the U.S., including the voluntary agreement’s potential benefits, tariff impacts, and anticipated impact on prescription medicine pricing for U.S. patients and Pfizer’s ability to deliver the next generation of cures, that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, uncertainties regarding the impact of the voluntary agreement with the U.S. Government and the direct purchasing platform on Pfizer’s business, operations and financial condition and results; risks related to the ability to realize the anticipated benefits of the voluntary agreement with the U.S. Government and the direct purchasing platform, including the possibility that the expected benefits will not be realized or will not be realized within the expected time period; the uncertainties inherent in research and development; the uncertainties inherent in business and financial planning, including, without limitation, risks related to Pfizer’s business and prospects, manufacturing capabilities, adverse developments in Pfizer’s markets, or adverse developments in the U.S. or global capital markets, credit markets, regulatory environment or economies generally; risks and uncertainties related to issued or future executive orders or other new, or changes in, laws or regulations; uncertainties regarding the impact of COVID-19 on our business, operations and financial results; and competitive developments.

A further description of risks and uncertainties can be found in Pfizer’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in its subsequent reports on Form 10-Q, including in the sections thereof captioned “Risk Factors” and “Forward-Looking Information and Factors That May Affect Future Results”, as well as in its subsequent reports on Form 8-K, all of which are filed with the U.S. Securities and Exchange Commission and available at www.sec.gov and www.pfizer.com.