Full Breakdown
Pharmaceutical Companies Seek Inclusion in Trump’s Drug Pricing Agreements
2/12/2026, 9:19:15 AM
Overview of the Situation
As the Trump administration negotiates agreements to lower U.S. drug prices, several pharmaceutical companies that have not been included in these deals are actively seeking ways to participate. This initiative comes in response to potential new tariffs and price-setting schemes that could significantly impact their operations.
Current Landscape of Drug Pricing Agreements
Six industry sources indicate that pharmaceutical companies, particularly those not targeted by President Donald Trump, are reaching out to the White House and the Centers for Medicare & Medicaid Services to negotiate their own agreements. Currently, 16 major drugmakers, including Pfizer and Eli Lilly, have successfully struck deals with the government after receiving directive letters from the Trump administration. However, many companies, particularly those represented by the Pharmaceutical Research and Manufacturers of America (PhRMA), remain uncontacted.
Concerns Among Excluded Companies
Companies like Bayer, represented by Global Head of Pharmaceuticals Stefan Oelrich, express concerns about the fairness of the current negotiation process. Oelrich stated that it would be "very odd" if only larger companies received favorable treatment. Smaller firms, such as those in the newly formed Midsized Biotech Alliance of America, are particularly worried about the implications of new price-setting initiatives. This group includes companies like Alkermes, BioMarin, Incyte, and Alnylam.
Implications of Medicare Pricing Programs
The Trump administration's pilot programs, known as GLOBE and GUARD, are designed to implement most-favored-nation pricing for Medicare drugs, aligning U.S. prices with those paid internationally. Companies without agreements may face significant challenges, as U.S. patients currently pay substantially higher prices for medications compared to other developed nations. Analysts note that while the agreements signed by larger drugmakers will lower prices for drugs sold in the Medicaid program, this only accounts for about 10% of U.S. drug spending.
Criticism and Opposition
Critics, including Sanofi CEO Paul Hudson, highlight the difficulties in managing a large number of deals and suggest that a catch-all offer from the government may be necessary. Hudson, who is set to become chairman of PhRMA, emphasized the complexities involved in delivering numerous agreements and the potential inequities faced by smaller companies.
Official Statements & Responses
White House spokesman Kush Desai affirmed the administration's commitment to negotiating deals that lower drug prices for all pharmaceutical companies. However, he noted that the administration has not provided guidance to companies that did not receive initial letters, leaving many uncertain about their options.
Verbatim Quotes
- “The ?Trump administration of course wants to negotiate deals that meaningfully lower drug prices for American patients with every pharmaceutical company,” — Kush Desai, White House Spokesman
- “Otherwise that would be very odd, that only because you have size that you would get different treatment,” — Stefan Oelrich, Bayer Global Head of Pharmaceuticals
- “There's a large group of companies that don't have a deal and what are they left with?” — Paul Hudson, CEO of Sanofi
Conclusion
As the Trump administration continues its efforts to lower drug prices, the exclusion of numerous pharmaceutical companies from initial agreements raises questions about equity and the future of drug pricing in the U.S. The ongoing negotiations and potential new programs could significantly reshape the landscape for both large and mid-sized drug manufacturers.
