Pfizer and the Trump administration have entered into a formal drug pricing agreement aimed at lowering prescription prices for U.S. patients. While the specific terms of the agreement remain confidential, the deal will see Pfizer voluntarily implement measures to lower drug prices for Americans comparable to those available in other developed countries. Newly launched medicines will also launch at these reduced prices.

“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 CEO, Pfizer, in a company press release. “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.”

According to the release, the deal will grant Pfizer a three-year grace period wherein Pfizer products won’t be subject to tariffs provided that Pfizer “further invest[s] in manufacturing in the United States.” Bourla stated that the company plans to direct an additional $70 billion to U.S. research, development, and capital projects over the next several years.

Pfizer also announced that it will participate in the government’s direct purchasing platform, TrumpRx.gov. Per the release, the platform will offer a “large majority” of Pfizer’s primary care treatments and select specialty brands at a discount averaging 50%. The portal has not gone live as of the time of this article’s writing.