By Ginika Igboke
Regeneron Pharmaceuticals on April 23 became the latest drug manufacturer to enter a Most Favored Nation (MFN) drug pricing agreement with the United States.
U.S. President Donald Trump announced the deal from the Oval Office, saying it expands a broader effort to reduce prescription drug costs.
“With this announcement, 17 of the world’s largest pharmaceutical companies, representing 80 percent of the branded drug market, have now agreed to sell their drugs to American patients at the lowest prices anywhere in the world,” Trump said.
With Regeneron’s participation, all pharmaceutical CEOs directly approached by Trump to join the MFN pricing model have agreed. The initiative aims to address longstanding disparities in drug pricing, where Americans often pay significantly more than patients in other countries.
Regeneron CEO Leonard Schleifer said the agreement benefits both patients and innovation, arguing that wealthier nations have historically benefited from U.S.-driven pharmaceutical research.
The company also announced a new gene therapy, Otarmeni, designed to reverse genetic hearing loss in children, and pledged to provide it free of charge in the United States.
Regeneron’s Chief Scientific Officer, George Yancopoulos, said the move highlights the potential of biotech innovation to improve health outcomes.
In addition, the cardiovascular drug Praluent will be made available for direct purchase through the Trump administration’s platform. As part of the agreement, Regeneron will also reduce Medicaid pricing and align future U.S. drug prices with those offered internationally. The company said it will continue investing in domestic research and manufacturing.
Terms of the Agreements
Trump first introduced the Most Favored Nation prescription drug pricing policy in May 2025, stating that the United States should pay no more than the lowest price offered globally.
The agreements, which are confidential, make it difficult to fully assess their financial impact. Trump has said drugmakers are expected to provide their best prices to Medicaid across their full portfolio of existing drugs and extend similar pricing to new medications under Medicaid, Medicare, and private insurance plans.
Some pharmaceutical companies, however, have indicated that certain drugs may be excluded from these arrangements.
Where details have been disclosed, discounts appear significant:
- Bristol Myers Squibb plans to offer Eliquis to Medicaid patients at no cost.
- Merck & Co. will provide Januvia, Janumet, and Janumet XR at a 70 percent discount.
- Pfizer will reduce prices on primary care medications by an average of 50 percent.
Other companies have offered less specific commitments. Eli Lilly and Company said it will adopt a more balanced global pricing strategy for future drugs, while Sanofi indicated it would provide substantial discounts.
The agreements are structured as three-year deals and are tied to tariff exemptions. Trump said earlier agreements have already led to planned investments totaling $18 trillion in domestic manufacturing.
Ongoing Negotiations
The administration is continuing discussions with hundreds of additional drugmakers that account for roughly 14 percent of branded medications, according to Chris Klomp of the Centers for Medicare and Medicaid Services.
“No family should have to decide whether they can afford their prescription,” Klomp said, adding that the policy aims to eliminate cost barriers to medication access.
Recent polling by Kaiser Family Foundation found that more than 40 percent of U.S. adults skipped prescribed medications in the past year due to cost. Meanwhile, a survey by United States of Care reported that 76 percent of voters consider health care costs an important issue ahead of the 2026 midterm elections.
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