WASHINGTON, D.C. — President Trump announced agreements with nine additional pharmaceutical firms on Monday. The companies have agreed to offer prescription drugs to state Medicaid programs at prices comparable to those in other developed nations.

The agreements are part of the "most-favored-nation" drug pricing policy. Seventeen pharmaceutical companies had previously agreed to voluntarily lower their drug prices under the policy. The nine new firms are Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.

"In total, these agreements are projected to save Americans more than $600 billion over a very short period of time," Mr. Trump said during an announcement at the Oval Office. "With today's announcement, we now have 26 companies representing 90% of the domestic pharmaceutical market, and the other 10% are also coming in," Mr. Trump said.

Health Secretary Robert F. Kennedy Jr. provided further details on the scope of the coverage. He said nine out of 10 drugs prescribed in the U.S. are now covered by the deals. The drugs included in the agreement treat diseases such as hemophilia, Parkinson’s disease, macular degeneration, glaucoma, liver disease, skin conditions, and various forms of cancer.

The companies have committed to spending $19.6 billion on manufacturing in the U.S. All of the new companies except BridgeBio are headquartered outside of the U.S. Participation by state Medicaid programs in the new deals is optional. The agreements will provide every State Medicaid program in the country access to MFN drug prices on products made by the nine companies, resulting in billions of dollars in savings.

UCB, Sun Pharma, Teva, and Astellas will contribute 290 metric tons of active pharmaceutical ingredients to the U.S. strategic reserves. Sun Pharma has committed to donating 71.4 tons of clindamycin and 6.75 tons of doxycycline, antibiotics used to treat bacterial infections, to the U.S. Strategic Active Pharmaceutical Ingredients Reserve (SAPIR). Astellas Pharma has invested in two U.S. manufacturing facilities in the past decade, including a cell therapy facility in Westborough, Massachusetts, and a gene therapy facility in Sanford, North Carolina, alongside research centers in South San Francisco and Cambridge, Massachusetts.

Why It Matters

The Most-Favored-Nation (MFN) program now includes 26 pharmaceutical companies, representing 89% of the U.S. branded drug market, according to a 2026 report. This expansion follows a 2024 study by Rand Corp. which found that U.S. prescription drug prices on average are nearly three times higher than they are overseas. The agreements aim to address this disparity by aligning domestic prices with international rates for Medicaid beneficiaries.

Timeline

In 2024, U.S. prescription drug prices on average were nearly three times higher than they are overseas, according to a 2024 study by Rand Corp. Trump signed an executive order in May 2025 to revive the "most favored nation" policy. As of September 30, 2025, the Trump administration had previously announced 14 drug pricing agreements with major pharmaceutical manufacturers, prior to the current batch of nine companies.

What's New

Additional reporting indicates that the Trump administration had previously announced 14 drug pricing agreements with major pharmaceutical manufacturers as of September 30, 2025, prior to the current batch of nine companies. It was also noted that Trump signed an executive order in May 2025 to revive the "most favored nation" policy.

Health Secretary Robert F. Kennedy Jr. said nine out of 10 drugs prescribed in the U.S. are now covered by the deals.

How Sources Differ

Sources differ on the specifics of active pharmaceutical ingredients contributions.