Trump’s Deals Fail as 16 Drug Companies Still Raise Prices: NPR

The landscape of pharmaceutical pricing remains complex, especially following recent agreements between 16 major drug companies and the Trump administration intended to reduce drug costs for Americans. Despite the deals, many of these companies have increased prices for some brand-name medications early in January 2026.

Trump’s Deals Fail as 16 Drug Companies Still Raise Prices

Initially announced on September 30, 2025, these agreements aimed to provide lower prices and encourage other wealthy nations to shoulder higher drug costs. However, in a recent analysis by 46brooklyn, a drug price research firm, it’s evident that price hikes have persisted among these companies.

Price Increases Amid Agreements

• 872 brand-name drugs saw price increases in January 2026.
• The median increase across these drugs was 4%, consistent with the previous year.
• Medications affected include treatments for cancer, heart failure, and Type 2 diabetes.
• Prices for some COVID-19 vaccines also went up.

Antonio Ciaccia, CEO of 46brooklyn, highlighted that January is traditionally when drug companies adjust their prices. The current increases align with historical trends, raising questions about the effectiveness of the “most favored nation” agreements.

White House Response

White House spokesperson Kush Desai downplayed the significance of list prices, stating that the specific discounts from the deals would still help state Medicaid programs and uninsured patients. Furthermore, the administration has urged Congress to support its Great Healthcare Plan, which is said to codify aspects of the negotiated agreements.

Insights on Company Practices

Many companies involved in the agreements proceeded to raise prices on their medications. For instance:

• Pfizer raised prices on 72 products, including a 15% increase on its COVID-19 vaccine.
• Merck increased prices on 18 medications, attributing the changes to their clinical value.

Conversely, some companies have implemented price reductions. Notably, 18 drugs experienced significant price cuts, with insulin product Fiasp receiving a dramatic 75% reduction in market price.

Impact of Drug Price Negotiations

The Biden administration’s Medicare drug price negotiations have played a crucial role in some price cuts. Recent adjustments have led to reductions of 38% to 79% for selected drugs under Medicare, effective January 2026. This has sparked dialogue about how such negotiations might influence pricing for privately insured patients.

Conclusion

The initial agreement between the Trump administration and major pharmaceutical companies aimed to provide relief to consumers but has not produced the desired outcome. As drug pricing continues to fluctuate, it remains to be seen how future policies and negotiations will shape healthcare costs in the United States.