Trump strikes nine more deals with drugmakers to lower prices
President Trump on Monday announced the next round of drug pricing deals, with nine new companies joining the 17 that previously reached agreements with the administration. The new participants—Alcon, Astellas, BeOne, BridgeBio, CSL, Sun Pharma, Kyowa Kirin, Teva, and UCB—made pledges similar to those of earlier dealmakers: selling new medications at prices comparable to the lowest in peer countries, offering state Medicaid programs 'most-favored nation' prices, and, in some cases, boosting domestic manufacturing and contributing to U.S. medical stockpiles. In return, at least some companies are expected to avoid tariffs. Specifically, UCB, Sun Pharma, Teva, and Astellas will together provide 290 metric tons of active pharmaceutical ingredients to the country's strategic reserves. All new companies except BridgeBio are headquartered outside the U.S.
The deals come after months of biotech and pharma companies seeking agreements to avoid what they viewed as price controls through Medicare pilot programs linking U.S. drug prices to those abroad. Health Secretary Robert F. Kennedy Jr. said Monday that nine out of ten drugs prescribed in the U.S. are now covered by the deals. However, the details of the new agreements, including their impact on Medicare, have not been publicly released, and it remains unclear what effect they will have on drug costs and accessibility. Medicaid already receives the lowest drug prices among U.S. payers, and two of the new dealmakers, Teva and Sun Pharma, specialize in generic drugs.
The announcements mark the latest expansion of Trump's drug pricing agenda, a centerpiece of the administration's health care reform plans. In April, officials promised to work out agreements with 'many hundreds' of other drugmakers. Kennedy said the president, through 'very, very emotional conversations,' made clear he and CMS Administrator Mehmet Oz could lose their jobs if they didn't deliver deals. The White House has repeatedly declined to release details while pushing Congress to codify the agreements. Administration officials have touted declines in drug prices, though Trump's signature TrumpRx drug purchasing platform has fallen short of its goals. The voluntary agreements don't indicate full alignment with the administration—officials have failed to get company endorsements for its drug pricing legislation, and drugmakers are still considering legal options to overturn the policies.