US President Donald Trump on Tuesday said Pfizer will cut the price on all of its prescription drugs sold to the Medicaid insurance programme and will introduce all new prescription drugs at a “most favoured nation” price.

The White House is also planning to unveil a direct-to-consumer website for Americans to buy drugs, called TrumpRx, the official added.

Pfizer will launch sales of some of its drugs directly to consumers through that website.

Trump sent letters to 17 leading drug companies in July telling them to slash drug prices to match those paid overseas – a policy the president has called most favoured nation pricing.

He asked them to respond with binding commitments by September 29.

Pfizer is the first company to announce a deal. A company spokesperson was not immediately available for comment.