News and Articles

• Nine additional pharmaceutical manufacturers joined the US most-favored-nation pricing program, expanding participation to 26 companies covering about 89% of the branded drug market.
• The agreements give state Medicaid programs access to lower prices for eligible medicines, linking US prices to lower levels available in other developed countries.
• The nine participating manufacturers committed nearly $20 billion to US manufacturing, tying drug-pricing concessions to greater domestic production.
• Four participating manufacturers are expected to contribute a combined 290 metric tons of active pharmaceutical ingredients to US strategic reserves, supporting pharmaceutical supply security.
• Participating manufacturers can also receive Section 232 tariff relief, making pricing, domestic manufacturing and import exposure increasingly connected in pharmaceutical sourcing decisions.

Nine more pharmaceutical manufacturers have agreed to participate in a US program that links prices for certain medicines to lower prices available in other developed countries. The latest agreements expand the program beyond large pharmaceutical manufacturers and bring several mid-sized drugmakers into the pricing initiative.

The participating companies include Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB. Their addition brings the total number of pharmaceutical manufacturers covered by most-favored-nation pricing agreements to 26. Together, participating companies represent about 89% of the branded drug market.

Under the agreements, state Medicaid programs will receive access to most-favored-nation prices on eligible medicines from the participating manufacturers. The pricing model seeks to bring US prices for covered drugs closer to the lowest prices paid in comparable developed countries. The agreements cover medicines used for chronic and rare conditions, including Parkinson's disease, hemophilia, glaucoma, macular degeneration, liver disease, skin disorders and several cancers.

The agreements also connect pharmaceutical pricing with manufacturing and supply security. Participating companies made commitments to increase manufacturing investment in the United States. The nine manufacturers collectively committed nearly $20 billion toward US manufacturing, adding a supply-side component to the pricing agreements.

Several manufacturers are also contributing pharmaceutical ingredients to the US Strategic Active Pharmaceutical Ingredients Reserve. UCB, Sun Pharma, Teva and Astellas are expected to contribute a combined 290 metric tons of active pharmaceutical ingredients. These commitments are intended to strengthen domestic access to essential pharmaceutical inputs and reduce supply dependence.

Tariff treatment forms another part of the agreements. Manufacturers participating in the pricing program can receive relief from Section 232 pharmaceutical tariffs. Sun Pharma, for example, agreed to extend most-favored-nation pricing to state Medicaid programs and future innovative medicine launches and received a two-year delay on Section 232 tariffs covering its innovative pharmaceutical products.

For pharmaceutical procurement teams, the agreements connect medicine prices with manufacturing location, tariff exposure and API supply. Buyers serving Medicaid programs could gain access to lower prices for covered products, while manufacturers will have stronger incentives to increase US production and secure domestic pharmaceutical inputs. The growing use of international reference pricing could also influence future launch and contracting decisions as manufacturers assess how prices established in one country affect pricing in the US.