President Donald Trump announced new agreements with nine pharmaceutical companies to voluntarily reduce drug prices, continuing his administration’s effort to link U.S. medication costs to lower prices abroad. The companies involved in these deals include Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB. These agreements require companies to discount outpatient drugs for state Medicaid programs, aligning domestic costs with international rates on medications treating chronic and rare diseases.

These companies also pledged a combined investment of $19.6 billion to bolster U.S. pharmaceutical manufacturing capabilities in the near future. Additionally, four companies—Astellas, Sun Pharma, Teva, and UCB—agreed to contribute active pharmaceutical ingredients to the federal government’s strategic reserve, aimed at reducing dependence on foreign drug supplies and enhancing preparedness for emergencies. For instance, UCB committed to providing 163 tons of levetiracetam, a key anticonvulsant.

This round of agreements brings the total number of drug pricing deals made under the Trump administration to 26 pharmaceutical companies, collectively covering 90% of the U.S. drug market. Earlier deals involved major names like Pfizer, Eli Lilly, and Novo Nordisk as part of the administration's “most favored nation” policy, which aims to raise drug prices abroad while lowering prices in America. Trump highlighted that the remaining 10% of drug manufacturers who have not yet signed on will soon comply.

The administration’s pricing strategy has already impacted pharmaceutical companies’ commercial approaches, revenue, and manufacturing plans. In response, companies are investing heavily in domestic production and expanding direct-to-consumer sales channels, including participation in the TrumpRx online portal. Despite some initial revenue declines due to lower prices, industry leaders anticipate that increased prescription volumes will eventually offset these reductions. U.S. drug prices remain significantly higher than in other countries, with branded drug costs reportedly over four times greater domestically, fueling the administration’s push for pricing reform.