Pfizer and Eli Lilly sign 'most favored nation' pricing deals to share foreign price hikes with US government

Pfizer and Eli Lilly have entered into “most favored nation” agreements with the Trump administration, according to a recent report.

The deals require the two companies to remit a portion of the additional revenue they generate from raising drug prices in foreign markets back to the U.S. government.

By linking overseas price hikes to domestic cost offsets, the administration hopes to mitigate the impact of high drug prices on American patients while preserving companies’ ability to set prices abroad.

Details of the revenue‑sharing percentages and the drugs covered were not disclosed, but the agreements signal a new approach to pharmaceutical pricing policy.

Industry observers note that the arrangements could influence future pricing strategies and may set a precedent for similar deals with other manufacturers.