Pfizer Agrees to Share Overseas Drug Revenue With U.S.

Pfizer Inc. entered into a most favored nation drug-pricing agreement with the Trump administration to share a portion of additional revenue generated from higher overseas drug prices with the U.S. Department of Health and Human Services. The deal, which applies to medicines already on the market, runs from January 1, 2026, through January 20, 2029.

Contract documents released by Public Citizen following a Freedom of Information Act lawsuit indicate that the revenue received by the government is intended to lower costs for U.S. patients and taxpayers. While specific revenue percentages and the list of covered medicines remain redacted, the policy explicitly links the reduction of domestic drug prices to efforts to increase prices in foreign markets.

This strategy intersects with broader trade negotiations, including a December agreement with the United Kingdom. That deal allows for tariff-free medicine imports into the U.S. in exchange for lower rebates paid to the National Health Service.