The Trump Administration has finalized Most Favored Nation (MFN) drug pricing agreements with nine additional major pharmaceutical companies. The companies included in the latest round of agreements are Amgen, Bristol Myers Squibb (BMS), Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi. These new deals follow earlier agreements with AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk, and Pfizer. As a result, most of the largest drug manufacturers operating in the United States are now covered by MFN pricing arrangements.
According to analysts at Truist Securities, these developments indicate that uncertainty around drug pricing and tariffs has been stabilized. They noted this could support positive momentum for the sector going into the new year. Analysts from Leerink Partners echoed this sentiment in their own communication to investors: President Donald Trump “is unlikely to attack the industry in 2026.”
Truist analysts described the terms of the new deals as generally consistent with expectations. The agreements focus on Medicaid pricing and emphasize direct-to-patient distribution platforms as well as commitments to invest in U.S.-based manufacturing and research and development.
Each agreement contains company-specific provisions. For example, BMS will provide its anticoagulant medication Eliquis to Medicaid at no cost. However, BMS indicated that this would have limited financial impact since Medicaid represents less than 5% of Eliquis’s U.S. revenue and is already subject to significant rebates.
Merck’s arrangement was also viewed positively by analysts. The company agreed to make its oral PCSK9 inhibitor enlicitide “broadly available as an affordable option,” consistent with Merck’s existing strategy to prioritize broad access through competitive pricing. Once approved, enlicitide will be distributed via direct-to-patient programs; it recently received a Commissioner’s National Priority Voucher.
Leerink analysts reported that BMS will not face future government-imposed pricing mandates under its agreement. Similar assurances were confirmed by both Gilead Sciences and Merck regarding their own deals.
Johnson & Johnson has not yet reached an agreement but remains engaged in discussions with federal officials. According to Leerink analysts, J&J stated it is “actively and positively engaged in discussion with the administration.” At a press conference announcing the nine new agreements, President Trump said J&J would finalize its deal next week and added that four other large companies are also close to reaching similar arrangements.
