Pharmaceutical Market Europe • January 2026 • 8
NEWS
Merck announces agreement with US government to reduce prescription drug prices
Merck plans to establish a direct-to-patient programme that would offer certain medication to eligible patients at affordable prices, including Januvia, Janumet and Janumet XR.
Through the programme, Januvia, Janumet and Janumet XR will be available to eligible US patients at a cash price that is approximately 70% less than the current list price.
Upon FDA approval, the list will be expanded to include enlicitide, an oral drug candidate designed to lower LDL cholesterol.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
The announcement comes as part of Merck’s commitment to expand its innovation and manufacturing presence in the US.
Merck currently has 15 manufacturing and R&D facilities employing over 30,000 people in the US.
Since 2017, it has invested over $12bn in US manufacturing, and since 2018 it has invested $81bn in US R&D. Over the coming years, Merck plans to invest over $70bn in US capital and R&D spending.
Gilead agrees on affordable medicines plan with US government
As part of the three-year agreement, Gilead has agreed to take a series of actions that align with the government’s new drug pricing strategy. This includes discounts on certain existing medicines within the US Medicaid programme, including medications to treat HIV, hepatitis C, hepatitis B and COVID-19.
These discounts will ensure that US prices reflect prices paid in other developed nations. In addition, the pharma company will work to ensure that future drugs are priced in line with other developed nations.
Gilead will also launch a direct-to-patient programme where individuals with a prescription can obtain Epclusa, the company’s hepatitis C treatment, at a discounted cash price.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
Gilead also recently announced a $32bn investment in the US R&D and manufacturing infrastructure over the next five years. The investment is expected to generate $43bn in national economic value, as well as creating over 3,000 jobs.
Novartis agrees to lower prescription drug prices in deal with US government
The company has agreed to take a variety of actions with the goal of meeting the US government’s current drug pricing priorities. These include: launching future medicines with comparable prices across high-income countries; building direct-to-patient platforms for Mayzent (siponimod), Rydapt (midostaurin) and Tabrecta (capmatinib); applying to participate in the GENEROUS (GENErating cost Reductions fOr US Medicaid) programme, designed to further improve access to Medicaid medicines, and supporting efforts to address global imbalances in pharmaceutical innovation investment.
The agreement means that US pharmaceutical tariffs on the company will be delayed for three years.
In 2025, Novartis announced a commitment to invest $23bn to expand its manufacturing and R&D presence in the US over the next five years. Since the announcement in April 2025, Novartis has taken a number of key steps towards this goal. It announced a new $1.1bn biomedical research hub in San Diego, California, as well as a new flagship manufacturing hub in North Carolina.
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