White House to announce new drug pricing deals with biotech companies

The Trump administration plans to announce a new round of voluntary drug-pricing agreements with several midsize biotech companies on August 31, 2026. Under these deals, companies will offer discounts on outpatient drugs to state Medicaid programs to align U.S. prices with foreign rates. This follows previous agreements with 17 major drugmakers, which are projected to save federal and state governments $64.3 billion over ten years and have already expanded Medicare coverage for obesity treatments.

Trump administration drug pricing agreements

• ▪The Trump administration plans to announce a new round of drug-pricing agreements with several midsize biotech companies on Monday, August 31, 2026.
• ▪The Trump administration has previously reached voluntary drug-pricing agreements with 17 pharmaceutical companies, including Pfizer, Eli Lilly, and Amgen, to reduce medicine prices for Medicaid and cash payers.

U.S. prescription drug cost disparities

• ▪Patients in the United States pay the highest prices globally for prescription medicines, often nearly three times more than patients in other developed nations.
• ▪United States President Donald Trump has pressured pharmaceutical companies to lower domestic drug prices to align with the lower prices paid by patients in foreign countries.

Medicaid foreign price alignment

• ▪Under the planned agreements, midsize biotech companies will agree to provide discounts on outpatient drugs to state Medicaid programs to align domestic prices with foreign prices.
• ▪The planned drug-pricing agreements will allow state Medicaid programs to pay prices for outpatient drugs that align with what biotech companies charge in foreign countries.

Federal savings projections

• ▪The Trump administration announced in May 2026 that its voluntary drug-pricing agreements are expected to generate $64.3 billion in savings over the next 10 years.
• ▪The projected $64.3 billion in savings from the Trump administration's drug-pricing agreements will be shared between federal and state governments.

Biotech company voluntary participation

• ▪The upcoming drug-pricing agreements involve voluntary participation from midsize biotechnology companies, whose specific identities were not disclosed in the initial reports on August 26, 2026.
• ▪Participation by state Medicaid programs in the upcoming drug-pricing agreements with midsize biotech companies is optional.

GLP-1 Medicare coverage expansion

• ▪The Trump administration has secured price reductions for GLP-1 drugs as part of its voluntary agreements with pharmaceutical companies.
• ▪The price reductions secured for GLP-1 drugs by the Trump administration have expanded Medicare coverage for obesity treatments.

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