President Trump on Thursday finalized a pricing agreement with drugmaker Regeneron, the last major holdout in his administration's push to lower U.S. drug costs by tying them to prices paid in other developed nations. The deal, part of the White House's so-called 'most favored nation' policy, commits Regeneron to voluntarily reduce prices on current and future medications sold to Medicaid.
Under the terms, Regeneron will also offer its cholesterol drug Praluent at a discount through the TrumpRx.gov website. In exchange, the company received tariff relief and other incentives—a tactic Trump has repeatedly used to pressure pharmaceutical firms to lower costs and shift manufacturing to the United States.
The announcement marks the culmination of a yearlong campaign targeting 17 drugmakers. Regeneron was the final company to sign on, completing the White House's roster of commitments. However, the discounts apply only to Medicaid patients, not those covered by private insurance or Medicare. Experts have noted that the impact on Regeneron's bottom line is likely minimal, as Medicaid already secures steep discounts on prescription drugs.
The deal comes as the White House intensifies its focus on prescription drug affordability, a key domestic policy priority ahead of the November midterm elections. The administration is working to convince voters that Republicans are serious about tackling healthcare costs, a issue that has historically favored Democrats.
In a related development, Regeneron also announced that the Food and Drug Administration had approved its gene therapy for children with a rare form of genetic hearing loss. The treatment targets a condition that affects only about 50 children annually. Regeneron said it would provide the therapy free of charge.
Critics have questioned the breadth of the pricing deal, noting that it excludes the majority of Americans who get their insurance through employers or Medicare. The White House has framed the agreement as a step toward broader reform, but analysts say it is unlikely to meaningfully alter the overall cost of prescription drugs in the U.S.
Trump has long used tariff threats as leverage to extract concessions from companies, a strategy that has drawn both praise and criticism. The Regeneron deal underscores the administration's willingness to use executive action to shape healthcare markets, even as legislative efforts on drug pricing remain stalled in Congress.
For more on the administration's healthcare push, see our earlier report on the deal's rollout. The political implications are also significant, as the White House seeks to counter narratives that Republicans are indifferent to affordability, a theme that has been central to Democratic campaigns.
