On December 19, 2025, President Trump announced new Most-Favored-Nation (MFN) drug pricing agreements with nine additional major pharmaceutical manufacturers, these include GSK, Sanofi, Genentech, Amgen, Bristol Myers Squibb (BMS), Boehringer Ingelheim, Novartis, Gilead and Merck. These agreements aim to align U.S. drug prices with those in other high‑income countries, though many operational details remain unclear. This latest announcement builds on earlier MFN agreements with other manufacturers and responds to a May 2025 Executive Order that requires companies to extend MFN pricing across Medicaid, Medicare, and private insurance, bring MFN‑related revenues back to the U.S., and broaden direct‑to‑consumer purchasing options.
All participating manufacturers confirmed they met the administration’s four MFN requirements and, in return, will receive a three‑year exemption from pharmaceutical tariffs. Many drugs will be listed on http://TrumpRx.gov at steeply discounted prices – for example, Plavix for $16 (down from $750), Epclusa for $2,500 (down from $25,000), and significant reductions for several BMS and Gilead products. In addition, participating companies have committed roughly $150 billion in new U.S. research, development, and manufacturing investments.
Despite the high‑profile event, the administration provided few specifics about how MFN pricing will be implemented. Analysts note that the impact on Medicaid and commercial insurance remains uncertain, especially since actual MFN prices have not yet been disclosed. A recently announced CMS pilot – the GENEROUS Model – may serve as a framework for MFN implementation, though this has not been confirmed. Additional MFN agreements are expected in the coming weeks.
