Mid-size biotechs join White House Medicaid pricing program, gain tariff relief

Nine mid-size drugmakers announced they will take part in the White House’s GENEROUS Medicaid pricing model, which ties U.S. Medicaid payments to the lowest prices paid abroad.

In return, the companies will be exempt from tariffs under Section 232 of the Trade Expansion Act, a measure aimed at protecting imports deemed critical to national security.

The participating firms – Alcon, Astellas Pharma, BeOne Medicines, BridgeBio Pharma, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB – did not disclose the specific terms of the agreements.

Analysts expect the program, which runs for six years, will have limited impact on overall drugmaker profits, but it signals a broader push to align U.S. drug prices with international benchmarks while encouraging domestic manufacturing.