Trump Secures Drug Pricing Deals With Nine More Firms

President Donald Trump announced agreements with nine mid-sized pharmaceutical companies on August 31, 2026, to implement a most-favored-nation (MFN) pricing model. Under the deals, companies including Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB will align U.S. prices for certain medications—including those for cancer and Parkinson’s disease—with the lowest prices paid in other developed nations for state Medicaid programs.

In exchange for these pricing commitments, the U.S. government will delay Section 232 tariffs on innovative pharmaceutical products for more than two years. The nine companies also committed to a collective investment of at least $19.6 billion in U.S. manufacturing. To reduce foreign reliance, Sun Pharma, UCB, Teva, and Astellas agreed to contribute active pharmaceutical ingredients to the U.S. Strategic Active Pharmaceutical Ingredients Reserve (SAPIR).

This expansion brings the total number of manufacturers under MFN agreements to 26, which the administration states covers 89% of the branded drug market. While the Council of Economic Advisers projects total savings of $600 billion over ten years, critics note the deals are voluntary and exclude employer-insured individuals and residents in states that did not expand Medicaid. The administration is now urging Congress to pass the Great Healthcare Plan to codify these mechanisms into federal law.