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Sanofi and Novartis Reach Separate Agreements with US Government to Lower Drug Prices and Support Innovation

Sanofi and Novartis Reach Separate Agreements with US Government to Lower Drug Prices and Support Innovation

Sanofi and Novartis have independently reached agreements with the US government aimed at lowering medicine prices for American patients while reinforcing continued investment in US-based manufacturing, research and innovation.

Sanofi announced a voluntary and confidential agreement with President Donald J Trump’s administration that establishes a framework to reduce medicine costs and strengthen the US role in biopharmaceutical innovation.

Under the agreement, certain Sanofi medicines will be made available to state Medicaid programmes at prices aligned with those in other high-income countries, resulting in average price reductions of around 61 percent for select treatments across diabetes, cardiovascular and neurological conditions, and cancer.

The company will also offer discounted medicines to consumers through TrumpRx.gov and other direct-to-patient platforms, delivering average savings of nearly 70 percent on some products. The agreement also includes a three-year exemption from Section 232 tariffs and builds on Sanofi’s previously announced USD 20 billion investment plan in US manufacturing and supply capacity.

“By working constructively with the administration, we are moving forward with a plan that lowers medicine prices for Americans now and strengthens the vital role of the US in delivering breakthroughs into the future. These sweeping changes to the US pharmaceutical landscape amplify the critical and urgent need for advanced economies to recognise the value of innovation and invest boldly in the future. At Sanofi, we are resolute in our mission to partner with governments worldwide to ensure innovative medicines receive the recognition they deserve, and are accessible to patients, because science and lives depend on it,” said Paul Hudson, Chief Executive Officer, Sanofi.

Novartis also confirmed it has reached an agreement with the US government to support drug price reductions while maintaining long-term investment in innovation. The company has committed to launch future medicines at comparable prices across high-income countries, expanding direct-to-patient access for select therapies through TrumpRx, and applying to participate in the GENEROUS (GENErating cost Reductions fOr US Medicaid) access model.

Earlier this year, the company announced a USD 23 billion investment over five years to expand its US R&D and manufacturing footprint, including new research hubs and advanced manufacturing facilities, and expects to receive three years of tariff relief in recognition of these investments.

“This agreement continues our long-term partnership with the US government to advance the development and manufacturing of breakthrough treatments for patients in the United States. We are committed to working with governments worldwide to ensure innovation is appropriately valued and that our medicines reach the patients who need them most,” said Vas Narasimhan, CEO, Novartis.

Along with the two pharma majors, Amgen and Boehringer Ingelheim have also taken steps to lower the cost of medicines for American patients.

Boehringer will invest USD 10 billion through 2028 to expand its pharmaceutical R&D and manufacturing operations in the US, including USD 1 billion dedicated specifically for capital expenditures. This investment is part of Boehringer's broader six-year plan to invest USD 20 billion across both its human pharmaceuticals and animal health businesses in the US.

"Boehringer Ingelheim has a long history of addressing chronic diseases and supporting patients in their care journey. Around 70 million Americans are suffering from cardiovascular, renal, metabolic diseases, and of those, 35 million have Chronic Kidney Disease (CKD). Most are unaware and won't find out they have CKD until damage is done, leading to poor health outcomes. We want to thank the President and his administration for the constructive engagement to achieve lower costs for medicines, as well as increased investment in the US pharmaceutical sector, leading to more American jobs. And most importantly, this agreement helps to ensure patients get the medicines they need, when they need them," said Jean-Michel Boers, President and CEO, Boehringer Ingelheim, USA Corporation.

Amgen will expand its direct-to-patient programme, AmgenNow, to include Aimovig (erenumab-aooe) and Amjevita (adalimumab-atto). Both will be available at a discounted monthly price of USD 299, nearly 60 percent and 80 percent lower than their current US list prices, respectively.

In October 2025, the company launched AmgenNow and made Repatha (evolocumab) available to American patients at a monthly price of USD 239, nearly 60 percent below its current US list price.

The programme is open to all eligible patients, including those who are uninsured, enrolled in high-deductible health plans or prefer to pay with cash or out of pocket. All three medicines will also be offered through TrumpRx.gov.

"The US leads the world in biopharmaceutical innovation, and we look forward to continued engagement with the US government to see that this innovation is appropriately supported globally," said Robert A Bradway, Chairman and Chief Executive Officer, Amgen.

More news about: global pharma | Published by News Bureau | December - 22 - 2025

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