WASHINGTON, D.C. — American patients could see significantly lower prescription drug costs under a new federal agreement with Regeneron that ties U.S. prices to the lowest rates paid in other developed countries.
What This Means for You
- Some prescription drugs could drop sharply in price, including a cholesterol drug falling from $537 to $225
- Medicaid programs nationwide would gain access to lower drug pricing
- A new gene therapy for a rare form of deafness would be provided at no cost to U.S. patients
The White House announced Thursday that the agreement is the latest in a series of deals aimed at implementing “most-favored-nation” pricing, a policy that sets U.S. drug prices based on the lowest price charged in comparable countries.
How the Pricing Policy Works
Most-favored-nation pricing means drug manufacturers agree to sell medications in the United States at prices equal to the lowest rates offered in other developed nations.
Under the agreement, all new Regeneron drugs will follow this pricing model, and state Medicaid programs will be able to purchase those medications at reduced rates.
Officials said the approach is intended to address longstanding price differences between the United States and other countries.
Immediate Price Reductions
The agreement includes specific price cuts for existing medications. Regeneron’s cholesterol drug Praluent will drop from $537 to $225 for patients who purchase it directly through a federal platform known as TrumpRx.
The administration said patients using the platform will be able to access discounted prices aligned with international benchmarks.
Rare Disease Treatment Offered at No Cost
The deal also includes a provision for a new gene therapy called Otarmeni, designed to treat a rare genetic form of deafness. The treatment will be provided at no cost to U.S. patients.
Otarmeni received approval through a federal program designed to accelerate review of treatments considered a national priority.
Investment and Supply Chain Expansion
Regeneron also committed to investing $27 billion in U.S.-based research, development, and manufacturing by 2029.
The company said it plans to more than double its domestic manufacturing capacity for biologic drugs, which are complex medicines produced from living cells.
Federal officials said the investment is part of a broader effort to strengthen domestic pharmaceutical supply chains and reduce reliance on foreign production.
Broader Policy Rollout
The Regeneron agreement marks the 17th deal under the administration’s most-favored-nation pricing initiative, which now covers companies representing roughly 86% of the branded drug market.
The policy stems from a 2025 executive order directing federal agencies to pursue lower drug prices by aligning them with international levels.
Officials said additional agreements with major pharmaceutical manufacturers have been reached over the past year, alongside related efforts to expand access to discounted medications through the TrumpRx platform.
Next Steps
The administration said it will continue implementing and monitoring the agreements, with future pricing and access changes dependent on compliance by participating drug manufacturers and ongoing federal oversight.
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