Pfizer announced a historic agreement with the U.S. government that will significantly lower the cost of prescription medicines for American patients while bolstering the nation's leadership in medical innovation.

The voluntary agreement, achieved in collaboration with the Administration of President Donald J. Trump, delivers on key goals to reduce drug prices, protect US biopharmaceutical leadership, and reinvest in American-based manufacturing and research.

The agreement responds to the four key requests outlined in President Trump’s July 31st letter. Under the terms, Pfizer has committed to ensuring US patients have access to prescription medications at prices comparable to those in other developed countries. Newly launched medicines will be priced in alignment with peer nations, further ensuring fairness and accessibility.

In addition, Pfizer will participate in TrumpRx.gov, a direct-to-patient purchasing platform offering substantial discounts on many of the company’s primary care treatments and select specialty drugs. Discounts will range up to 85 per cent, with average savings around 50 per cent.

While specific terms of the agreement remain confidential, the broader framework provides Pfizer with critical clarity and stability around pricing and tariff policy. In particular, Pfizer products currently under Section 232 investigation will not face tariffs for a period of three years, contingent on the company's continued investment in U.S. manufacturing.

Albert Bourla, Chairman and Chief Executive Officer of Pfizer, joined President Trump and members of the Administration at the White House today to commemorate the agreement.

“We are proud to stand with President Trump in celebrating this landmark agreement—a win for American patients, a win for American innovation, and a win for Pfizer,” said Dr. Bourla. “This agreement marks the end of the era where American families disproportionately carried the global cost of pharmaceutical innovation. It ensures that all patients, regardless of geography, benefit from our breakthroughs—while reinforcing America’s leadership in life sciences.”

Dr. Bourla emphasized that the agreement provides Pfizer with the policy certainty needed to reinvest aggressively in the U.S. economy.

“With clear direction on pricing and tariff protection, we are unlocking our ability to invest boldly in the United States. Over the next few years, we will dedicate an additional $70 billion to U.S.-based research, development, and capital projects. This builds on our more than $83 billion investment in American biotech innovation between 2018 and 2024.”

Pfizer’s U.S. presence already includes 31,000 employees, 13 manufacturing and distribution sites, and 7 major R&D facilities across the country. The company’s enhanced investment strategy is expected to further fuel job creation, economic growth, and technological leadership.

With this new agreement in place, Pfizer will intensify its focus on delivering the next generation of medical breakthroughs in areas where it can make the greatest difference for patients—particularly in oncology, obesity, vaccines, and inflammation and immunology.

“This is a pivotal moment for our industry and for American healthcare,” Dr. Bourla concluded. “Together with the U.S. government, we are ensuring that innovation remains sustainable, accessible, and centered on the needs of patients. We are entering a new era—one in which affordability and innovation can coexist.”