Teva Pharmaceuticals is moving toward an agreement with the Trump Administration aimed at lowering the cost of select medicines for Americans covered by Medicaid, while preserving investment in drug innovation and U.S. manufacturing.

 

Teva’s U.S. affiliate, Teva Pharmaceutical Industries, said the two sides have reached a shared commitment to reduce medicine costs for Medicaid patients. The agreement has not yet been finalized.

 

“Teva appreciates the opportunity to work with President Trump and his Administration to expand access and affordability for patients today while enabling continued investment in medicines patients need tomorrow,” said Chris Fox, President, Teva USA. 

 

“Teva built its business around delivering affordable medicines to Americans, and we share the Administration’s commitment to improve access to more affordable medicines while investing in scientific innovation and domestic manufacturing capabilities in the U.S.”

 

The company remains in active negotiations with the Trump Administration and is seeking a deal built around all four of President Trump’s drug-pricing priorities.

 

If finalized, the agreement would bring U.S. Medicaid pricing for certain Teva medicines in line with prices in leading developed markets under the company’s GENEROUS (GENErating cost Reductions for U.S. Medicaid) framework.

 

Teva would also make a prospective Most-Favored-Nation (MFN) commitment covering applicable future innovative drug launches, potentially linking U.S. pricing to prices in other developed markets.

 

Beyond pricing, Teva has offered to maintain a dedicated reserve of certain active pharmaceutical ingredients (API) to support public-health needs. The company also plans continued investment in pharmaceutical manufacturing capabilities in the United States.

 

The terms of the ongoing negotiations remain confidential, and the companies have not yet reached a final agreement.