Trump Expands Drug Pricing Deals With 9 Pharma Companies, Bringing Total to 26
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President Donald Trump has secured new drug pricing agreements with nine pharmaceutical companies, bringing the total to 26. The deals require discounts on outpatient drugs across all state Medicaid programs and include commitments to invest at least $19.6 billion in U.S. manufacturing. The agreements cover treatments for chronic and rare conditions, including hemophilia, liver disease, skin disorders and certain cancers.
Key Facts
- The nine new companies include Alcon Inc., Astellas Pharma, BeOne Medicines Ltd., BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals Industries Ltd. and UCB.
- The companies have committed to collectively investing at least $19.6 billion in U.S. manufacturing in the near term.
- Astellas, Sun Pharma, Teva, and UCB have agreed to donate active pharmaceutical ingredients (API) for key medicines to the federal government's strategic reserve.
- The 26 drugmakers represent 90% of the domestic pharmaceutical market, according to President Trump.
- Secretary of Health and Human Services Robert F. Kennedy Jr. said Trump called him and Dr. Mehmet Oz every hour of the day and made it clear their jobs depended on getting the deals through.
New Agreements
The agreements, announced on Monday, require the companies to offer discounts on outpatient drugs across all state Medicaid programs, bringing U.S. drug prices more in line with prices in foreign markets. The deals cover treatments for several chronic and rare conditions, including hemophilia, liver disease, skin disorders and certain cancers. The nine companies are Alcon Inc., Astellas Pharma, BeOne Medicines Ltd., BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals Industries Ltd. and UCB.
Market Impact
These new agreements expand the Trump administration's total number of drug pricing deals to 26 companies, which, according to the President, represent 90% of the domestic pharmaceutical market. He said the remaining 10% of the industry is "also coming in" and "has no choice." Over the past year, the Trump administration has struck drug pricing agreements with 17 other pharmaceutical companies, including Pfizer Inc., Eli Lilly And Co and Novo Nordisk A/S, as part of its "most favored nation" policy. Drugmakers are investing billions to shift manufacturing to the U.S. and expanding direct-to-consumer sales through platforms like TrumpRx to reduce exposure to tariffs. However, lower U.S. drug prices are pressuring revenues, with companies like Novo Nordisk expecting higher prescription volumes to take time to offset the decline.
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Trump Expands Drug Pricing Deals With 9 Pharma Companies, Bringing Total to 26
