President Donald Trump announced a new series of drug-pricing agreements on Monday with several international pharmaceutical companies and biotechnology firms. The deals are intended to lower healthcare costs by securing "most-favored-nation" pricing for state Medicaid programs.
The announcement follows previous agreements the administration reached starting last year with 17 major drugmakers, such as Pfizer, Eli Lilly, and Novo Nordisk. Under those terms, companies agreed to reduce prices for federal health programs and sell certain medications through a government-branded website in exchange for relief from tariffs.
Companies participating in the new round include Astellas, BeOne Medicines, CSL, BridgeBio, Sun Pharmaceutical, and UCB SA. Executives from these firms attended an Oval Office event where the President stated the deals would offer "tremendous" discounts. Teva Pharmaceuticals also attended the meeting but noted it is still in discussions regarding a potential agreement.
Specific details regarding which drugs are covered or the exact discount percentages were not released by the White House. Some participating companies stated in press releases that the terms of the agreements are private. The administration and some companies noted the deals include provisions for future savings on innovative medications and commitments to increase U.S.-based manufacturing.
The U.S. government has previously estimated its broader drug-pricing efforts could save $64.3 billion in federal and state spending over 10 years, though the source describes this figure as speculative. The exact impact on a per-person basis remains unknown because specific price lists have not been disclosed.
Critics from the consumer advocacy group Public Citizen argue the impact may be limited because Medicaid already receives statutory discounts and many enrollees already pay very little out of pocket for prescriptions. The group characterized the deals as a distraction from a "failed plan" to lower prices to levels seen in other wealthy countries. For seniors, the administration highlighted a temporary pilot program for weight-loss drugs that began July 1, which CMS Administrator Mehmet Oz said 600,000 people have sought prescriptions through.
The administration is using the deals to highlight affordability ahead of the upcoming midterm elections. Next steps include ongoing negotiations with companies like Teva. No specific deadline for the full implementation of the newest biotech deals was reported.