The Trump administration reached voluntary drug pricing agreements with nine pharmaceutical companies on Monday, including Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB. The deals represent an expansion of the administration’s pharmaceutical pricing initiative linking U.S. drug prices to international rates.
Under the agreements, the nine companies committed to providing discounts on outpatient medications to state Medicaid programs, aligning prices with what the companies charge in foreign markets. The drugs covered address chronic and rare diseases including hemophilia, liver conditions, skin disorders, and certain cancers. Additionally, the companies pledged a collective investment of at least $19.6 billion in U.S. manufacturing operations in the near term.
Four of the participating companies—Astellas, Sun Pharma, Teva, and UCB—also agreed to donate active pharmaceutical ingredients to the federal government’s strategic reserve. This initiative aims to decrease dependence on foreign pharmaceutical supply chains and strengthen domestic preparedness for potential supply emergencies. UCB, for example, will contribute 163 tons of levetiracetam, an anticonvulsant medication.
The administration characterized the deals as part of its broader pharmaceutical pricing strategy, noting that agreements now cover 26 companies representing approximately 90% of the domestic pharmaceutical market. The remaining 10% of industry players are described as in negotiations or expected to join. These efforts build on earlier drug pricing agreements reached with major manufacturers including Pfizer, Eli Lilly, and Novo Nordisk following an executive order issued in May 2025 promoting “most favored nation” pricing policies.
The pharmaceutical industry has adjusted operations and strategies in response to the pricing initiatives, with manufacturers relocating production to the U.S. and expanding direct-to-consumer distribution channels. Industry representatives have argued that pharmacy benefit managers, rather than pricing policies, bear primary responsibility for domestic price disparities, noting that U.S. prescription drug costs average nearly three times higher than comparable international prices.
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