U.S. President Donald Trump is expected to announce a new round of drug-pricing agreements on Monday, a White House official said, part of a push to make healthcare more affordable for Americans.
Bayer BAYGn.DE, Takeda 4502.T, CSL CSL.AX and several mid-size biotechs are expected to announce deals, The Financial Times reported, citing two people familiar with the matter.
An event on healthcare affordability will take place at 3 p.m. ET (1900 GMT) on Monday, the White House said.
Smaller drugmakers have delayed deals
The deals will build on agreements the administration struck with 17 of the world's largest drugmakers, including Pfizer PFE.N, Eli Lilly LLY.N and Amgen AMGN.O, starting last year. The drugmakers agreed to offer lower prices comparable to what is paid in other developed countries, referred to as "most-favored-nation" pricing.
Those companies agreed to cut some prices for federal health programs and sell some medicines directly to patients through a Trump-branded website, in return for tariff relief.
Smaller and mid-sized drugmakers had been slow to sign onto drug pricing deals, Reuters has reported.
A Reuters report in June found that only Japan's Astellas 4503.T had confirmed applying for the Medicaid pricing program by that point, with executives at companies such as Ionis Pharmaceuticals IONS.O saying they saw little financial benefit in joining.
It is not yet clear how much the deals will save the government or patients. Medicaid already gets steep discounts from drugmakers under existing law, and most people covered by the program pay little out of pocket for prescriptions.
The White House has held several high-profile events with pharmaceutical executives this year to promote its efforts on healthcare costs, part of a broader push to highlight affordability before this year's midterm elections that will decide control of Congress.
The administration has said its broader drug pricing push, including the earlier deals with large pharmaceutical companies, could save $64.3 billion in federal and state spending over the next decade, but that number is speculative.
Pressure on drugmakers to lower prices
U.S. patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere.
Germany-based Bayer and Japan's Takeda declined to comment. Australia-based CSL did not immediately respond to Reuters' requests for comment.
The U.S. Department of Health and Human Services also did not immediately respond.
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