President Trump announced new drug pricing agreements with nine pharmaceutical companies on Monday, as part of his administration’s continued effort to reduce medication costs by linking U.S. prices to those charged in foreign markets.
The nine companies entering into agreements are Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB. Under the terms, these companies agreed to provide discounts on outpatient medications to every state Medicaid program, with prices aligned to what the companies charge internationally. The agreements cover drugs treating various chronic and rare conditions including hemophilia, liver disease, skin conditions and certain cancers. The companies also collectively committed to invest at least $19.6 billion in U.S. manufacturing in the near term.
Four of the companies—Astellas, Sun Pharma, Teva and UCB—further agreed to donate active pharmaceutical ingredients to the federal government’s strategic reserve. The White House stated this measure aims to reduce dependence on foreign supply chains and strengthen domestic preparedness. UCB will contribute 163 tons of levetiracetam, an anticonvulsant medication used to control and prevent seizures.
These agreements bring the total number of pharmaceutical companies signing pricing deals with the Trump administration to 26, representing approximately 90 percent of the domestic pharmaceutical market according to the administration. These latest deals follow 17 similar agreements reached over the previous year with major companies including Pfizer, Eli Lilly and Novo Nordisk. The administration’s drug pricing initiative, based on a “most favored nation” policy, was revived through an executive order in May 2025.
The pharmaceutical industry has experienced significant impacts from these pricing agreements, with major manufacturers adjusting commercial strategies and investing heavily in relocating manufacturing to the United States. Several companies have expanded direct-to-consumer sales channels and reported that lower U.S. prices are affecting revenue streams. Industry data shows that U.S. prescription drug prices average nearly three times higher than international prices, with branded medications commanding premiums more than four times greater than overseas pricing.
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