TrumpRx is here. This is why it won't lower drug prices for most Americans.

By Jaimy Lee

The site is for people in the U.S. who pay out of pocket for certain brand-name medications, such as Zepbound and Wegovy

President Donald Trump in September announced a drug-pricing deal with Pfizer. The administration has since struck deals with 15 other pharmaceutical companies.

TrumpRx launched Thursday evening, offering medications at lower prices to Americans willing to pay directly, but the site's discounts don't apply to people with Medicare, Medicaid and other government health plans.

President Donald Trump unveiled the idea for the site on Sept. 30 at an event with Pfizer announcing the first "most-favored-nation," or MFN, pricing deal with a drugmaker. MFN pricing is based on the concept that Americans should pay comparable prices for the same drugs as people in other developed countries.

TrumpRx is a platform operated by the government that allows Americans to search for certain drugs and then get a discounted price using a coupon card. In some cases, there is no coupon, and patients can purchase their medication directly from the drugmaker's website "or through a limited set of mail-order pharmacies," according to TrumpRx. The coupon can only be used at participating pharmacies and by people who are not enrolled in any government health plans.

It lists about 40 drugs made by five drugmakers. Those include Eli Lilly's (LLY) weight-loss drug Zepbound and Novo Nordisk's (NVO) Wegovy injection and pill. The administration said other drugs will be added "in the coming months."

"This appears more like a public relations activity than one that would materially aid consumers," Raymond James analyst Chris Meekins told investors on Friday morning. "Most drugs will likely still be available for cheaper prices through insurance, and many uninsured patients would likely not be able to afford many of the cash prices for their medications."

In the months leading up to the launch, there were a half-dozen splashy events at the White House announcing new MFN deals. Company executives flew to Washington for the events, including some from Europe and the U.K. Trump spoke, as did Mehmet Oz, the administrator of the Centers for Medicare & Medicaid Services, and Marty Makary, the commissioner of the Food and Drug Administration.

What the deals with pharmaceutical companies mostly appeared to do was reassure investors that Trump's threats to tackle drug pricing had been addressed and that business could continue as usual. Pfizer's stock (PFE) closed 6.8% higher the day it announced its deal with the administration, even after the company offered an average 50% discount on certain drugs.

Since announcing the deal with Pfizer, the Trump administration has negotiated prices for dozens of medicines and experimental drugs from a total pf 16 pharmaceutical companies, which are now exempt from tariffs for three years. Many of the drugmakers also made billion-dollar commitments to build or enhance manufacturing plants in the U.S.

In a post on X announcing the launch of the site, White House press secretary Karoline Leavitt said it "will save millions of Americans money." However, it's unclear how many people in the U.S. pay cash for brand-name medications, and Wall Street expects the site and its discounts to have little impact on the companies.

"We do not expect significant utilization through these channels given the cash-pay prices still come well above typical copays (particularly with copay assistance programs)," William Blair analyst Matt Phipps told investors in mid-December, "and therefore do not expect significant impacts on the companies' growth prospects."

Regeneron (REGN) was the only company that received a letter last summer from the White House outlining ways to lower the prices of its therapies and that did not subsequently announce a deal with the administration. RBC Capital Markets' Brian Abrahams recently told investors that the company's negotiations appear to be "still ongoing."

-Jaimy Lee

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02-06-26 1152ET