Leerink analysts hailed the deals as a sign that President Trump “is unlikely to attack the industry in 2026.”
The Trump Administration has struck Most Favored Nation drug pricing agreements with nine more large biopharma companies.
Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis and Sanofi are the latest companies to reach agreements with the White House. With AstraZeneca, Eli Lilly, EMD Serono, Novo Nordisk and Pfizer having previously reached similar deals, most of the largest drugmakers in the U.S. are now covered by MFN deals.
Truist Securities analysts said in a note to investors that they view the agreements “as signaling that pricing and tariff uncertainty is now stabilized, supporting potential positive sector momentum into the new year.” Leerink Partners analysts reached a similar conclusion, writing in a note to investors that President Donald Trump “is unlikely to attack the industry in 2026.”
The terms of the nine new deals are broadly in line with expectations, Truist analysts said. They added that the scope is limited to Medicaid pricing, and there is an emphasis on direct-to-patient platforms and commitments to invest in U.S. manufacturing and R&D.
While the broad focus of the deals is similar, the details are specific to each company. Leerink analysts said BMS will offer its blockbuster anticoagulant Eliquis to Medicaid for free, but the financial impact should be limited. Medicaid accounts for less than 5% of U.S. revenue for the drug, BMS told the analysts, and it is already “very heavily rebated.”
Leerink analysts said Merck’s deal appears positive for the company. Merck has agreed to make its oral PCSK9 inhibitor enlicitide “broadly available as an affordable option,” which Leerink analysts said is aligned with the company’s “pre-existing strategy to drive revenue by pricing for broad access.” The company will offer the cholesterol-lowering drug through direct-to-patient programs once it is approved. The therapy garnered a Commissioner’s National Priority Voucher last week.
BMS said it will not be subject to future pricing mandates. Leerink analysts said other companies did not make similar claims in their press releases. The analysts confirmed with Gilead and Merck that they will also not be subject to future pricing mandates.
Johnson & Johnson is a notable omission from the list of companies that have reached agreements with the White House. The company told analysts that it is “actively and positively engaged in discussion with the administration,” the Leerink team said.
At a press conference about the nine agreements, Trump said J&J will announce its agreement with the administration next week. He added that J&J and “four other very big companies” have joined their peers in agreeing to offer MFN prices.
