Teva Discusses Lower Medicaid Drug Prices With Trump Administration

Teva Pharmaceuticals, the U.S. affiliate of Teva Pharmaceutical Industries Ltd., has announced a shared commitment with the Trump Administration to explore ways to lower the cost of selected medicines for American patients covered by Medicaid.

The company said discussions are ongoing and that a final agreement has not yet been reached. If finalized, the proposed arrangement could support lower drug prices while allowing Teva to continue investing in scientific innovation and pharmaceutical manufacturing in the United States.

Chris Fox, President of Teva USA, said the company supports efforts to improve access to affordable medicines while continuing to develop treatments for patients.

Teva said it is in active discussions with the Trump Administration on an agreement based on the President’s four drug pricing priorities. One part of the potential agreement would focus on aligning U.S. Medicaid prices for selected medicines with prices available in other leading developed markets.

The proposed approach would use the GENEROUS framework, short for GENErating cost Reductions fOr U.S. Medicaid. Through this framework, Teva could offer lower prices for certain medicines covered by the Medicaid program.

The potential agreement would also include a prospective Most-Favored-Nation (MFN) commitment for applicable future innovative medicines launched by the company. An MFN pricing approach generally aims to link U.S. drug prices with lower prices available in comparable developed countries.

In addition to drug pricing measures, Teva has proposed maintaining a dedicated reserve of certain active pharmaceutical ingredients (APIs) to support public health needs. The company also plans to continue investing in pharmaceutical manufacturing capabilities in the United States.

Teva has long been a major supplier of generic and specialty medicines in the U.S. market, and the company said affordable access remains an important part of its business strategy.

The company noted that negotiations with the Trump Administration are still underway and that the terms needed to reach a final agreement remain confidential.

If completed, the agreement could represent another step in efforts to reduce Medicaid drug costs while supporting investment in pharmaceutical innovation and domestic drug manufacturing. Further details are expected once discussions between Teva and the Trump Administration are finalized.