Of the 17 companies that were implored by the White House last July to apply Most Favored Nation pricing to their drugs, Regeneron is the last to agree—the same day the FDA greenlit its gene therapy for hearing loss in kids.
After nearly nine months of holding out, Regeneron has finally agreed to fall in line with the Trump administration’s Most Favored Nation pricing push. Thursday evening, just hours after announcing the FDA approval for its hearing loss gene therapy Otarmeni, the pharma said it would lower the prices of “several” of its drugs to the same level as in other, similarly developed countries.
Regeneron has also committed to offer its cholesterol-lowering drug Praluent on the government’s direct-to-consumer platform TrumpRx, according to the company’s release, as well as apply the Most Favored Nation principle when setting the prices of its future medicines.
“The agreement comes as an awaited development,” Truist Securities wrote to investors shortly after Regeneron announced the agreement. The deal is “welcome,” the analysts added, as it removes “any potential tail risk and overhang associated with delays” that could come with holding out on the government.
Truist expects the deal to have an “incremental impact” on Regeneron’s earnings.
BMO Capital Markets agreed, noting that “Praluent revenues account for a small fraction of Regeneron’s top line,” on which there will be an “incremental revenue impact at most.”
Alongside its pricing promises, Regeneron also said that it has agreed to “certain activities and investments to support R&D and manufacturing in the U.S.,” though the pharma did not specify what these activities are.
In exchange for its commitment, Regeneron has secured a three-year relief from any tariffs and other pricing mandates that the administration may come up with, according to Thursday’s release.
Regeneron’s pricing deal with the government comes the same day the pharma’s long-anticipated hearing loss gene therapy won approval. Otarmeni’s greenlight was supported by data from the Phase 1/2 CHORD study, which showed that 11 of 12 pediatric patients achieved “clinically meaningful” improvements in their hearing after treatment. Three of these patients reached normal hearing levels.
Otarmeni is indicated for patients with congenital deafness due to a deficiency in otoferlin, a protein that plays a key role in sending sound signals to the brain. Otarmeni is the first FDA-approved medicine that targets an underlying cause of deafness and is Regeneron’s first gene therapy. In line with its pricing promises with the government, the pharma has agreed to provide Otarmeni for free in the U.S.
With the Regeneron agreement on Thursday, the Trump administration has finally gotten all Big Pharmas to participate with its Most Favored Nation pricing scheme. In July 2025, the government wrote to 17 major pharma companies—including Regeneron—calling on them to bring down their drug pricing.
President Donald Trump at the time gave the companies “60 days” to act on the letters, though several companies went well past this deadline, including Johnson & Johnson and AbbVie, both of which came to their respective agreements with the government this year.
Many of these deals involved explicit language intended to mitigate the risk of tariffs, which officially hit the industry April 3, when Trump imposed a 100% levy on imports of patented pharmaceutical products and ingredients. But not all MFN deals ultimately resulted in exemptions. Pfizer, for example, was absent from the list of firms with company-specific tariff agreements despite being the first Big Pharma to appear at the White House announcing an agreement and specifically agreeing to MFN pricing.
