The United States government has secured agreements with nine leading pharmaceutical companies to lower the cost of medicines for Medicaid beneficiaries and cash-paying patients, Reuters reports. The deals are part of a broader effort to align U.S. drug prices with those in other high-income countries.

The participating firms include Bristol Myers Squibb, Gilead Sciences, Merck, Roche’s U.S. unit Genentech, Novartis, Amgen, Boehringer Ingelheim, Sanofi, and GSK. Under the arrangements, companies will reduce prices on most drugs sold to Medicaid, while also cutting select cash-pay prices for consumers. Officials highlighted that the agreements are expected to generate significant savings, though precise figures were not disclosed.

Merck announced that its diabetes medications, Januvia, Janumet, and Janumet XR, will be sold directly to U.S. consumers at approximately 70 percent below list prices. Its experimental cholesterol drug enlicitide may also be included once approved. Collectively, the companies pledged over 150 billion US dollars in domestic research, development, and manufacturing, with Merck contributing 70 billion US dollars. Several firms also agreed to provide drug ingredients to the U.S. strategic reserve.

The agreements require that new medicines launched in the United States be priced at levels no higher than those in comparable markets abroad. Companies adhering to these conditions may qualify for a three-year exemption from certain tariffs, and a portion of revenues from foreign sales will be remitted to the United States to offset costs.

These arrangements build on earlier negotiations with Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk, and EMD Serono. Three major companies—Regeneron, Johnson & Johnson, and AbbVie—have not yet announced agreements, although AbbVie was expected to do so imminently.

Analysts note that Medicaid, which accounts for approximately 10 percent of U.S. drug spending, already benefits from substantial price reductions, in some cases exceeding 80 percent. Pfizer indicated that the new discounts could compress margins and prices in 2026.