Trump Strikes Medicaid Drug Price Deals With Nine Pharma Firms

Bloomberg··US·Read original
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Summary · why it matters

The Trump administration has struck new drug pricing agreements with nine biotech and pharmaceutical companies, including UCB SA, Bridgebio Pharma Inc., and Sun Pharmaceutical Industries Ltd., President Donald Trump announced Monday at the White House. The deals, which also include Teva Pharmaceutical Industries Ltd., Astellas Pharma Inc., Alcon AG, BeOne Medicines Ltd., CSL Ltd., and Kyowa Kirin Co., will ensure that every drug is offered at the lowest prices available anywhere in the world. Trump claimed that these additions bring the total to 26 companies representing 90% of the domestic pharmaceutical market, with the remaining 10% expected to join. The agreements require companies to provide discounts on outpatient drugs to state Medicaid programs, aligning state prices with those charged in foreign countries, though participation by states is optional. This announcement follows earlier most-favored-nation deals with 17 large pharmaceutical companies, including Pfizer Inc. and Eli Lilly & Co., which agreed to reduce prices for federal health insurance programs in exchange for tariff relief. The deals do not address costs for the over 160 million Americans with employer-sponsored insurance, and researchers estimate that applying similar pricing to 82 high-cost brand-name drugs could save states more than $8 billion annually.

Impact on assets 12

Biotech & Genomic Medicine▼
Kyowa Kirin Co., Ltd.
4151
▼ NegativeRegulationrelevance

Kyowa Kirin is one of nine firms agreeing to Medicaid discounts aligning US prices with lower foreign prices, pressuring its drug pricing.

Astellas Pharma Inc.
4503
▼ NegativeRegulationrelevance

Astellas is among the nine pharma firms struck by the Trump administration's Medicaid most-favored-nation pricing deals.

UCB SA
0NZT
▼ NegativeRegulationrelevance

UCB SA is one of the nine pharma firms striking Medicaid pricing deals to offer drugs at the lowest global prices.

BeOne Medicines AG
6160
▼ NegativeRegulationrelevance

BeOne Medicines is one of the nine companies signing the new Medicaid drug pricing agreements requiring lowest-price discounts.

BridgeBio Pharma Inc
BBIO
▼ NegativeRegulationrelevance

BridgeBio is one of nine firms signing Medicaid most-favored-nation drug pricing deals requiring discounts aligned to foreign prices.

Eli Lilly and Company
LLY
▼ NegativeRegulationrelevance

Eli Lilly is cited among the 17 large pharma firms in earlier most-favored-nation deals to cut federal program prices in exchange for tariff relief.

Pfizer Inc
PFE
▼ NegativeRegulationrelevance

Pfizer is named among the earlier 17 companies that agreed to reduce prices for federal health insurance programs under most-favored-nation deals.

Aging Population▼
Alcon AG
ALC
▼ NegativeRegulationrelevance

Alcon is listed among the nine companies agreeing to Medicaid drug discounts under the new pricing agreements.

Health Care▼
Climate Adaptation & Water▲
Artificial Intelligence▲

Off-coverage companies 1

CSL Limitedi
Private▼ NegativeRegulationrelevance

CSL is one of the nine biotech/pharma firms required to offer Medicaid discounts at lowest global prices under the deal.