The U.S. government struck drug pricing deals with nine leading drugmakers on Friday, with the most notable among them being Bristol Myers Squibb (BMY), which agreed to offer its blockbuster blood thinner, Eliquis, free to the Medicaid program starting next year.
As part of the deal, Bristol-Myers (BMY) also moved to strengthen Eliquis’ supply chain in its home market by agreeing to donate more than seven tons of its active pharmaceutical ingredient to the U.S. Strategic Active Ingredient Reserve.
The Princeton, New Jersey-based pharma giant, with Pfizer (PFE), its partner for Eliquis, generated $13.3B in sales from the oral Factor Xa inhibitor in 2024, including $9.6B from the U.S., with ~14% YoY growth.
However, BMS didn’t identify any financial impact from the move, which is set to take effect on Jan. 1 on the state and federally backed health insurance program supporting millions of Americans.
“We are taking direct action to improve the lives of millions of Americans, ensuring our nation’s most vulnerable have access to this critical medicine at no cost,” CEO Christopher Boerner remarked.
The deal, which comes under President Donald Trump’s “Most Favored Nation” drug pricing policy, also included an agreement to offer the company’s brand-name medications, including Sotyktu and Zeposia, with an 80% discount to cash-paying customers.
In exchange, Bristol Myers (BMY) will receive three years of tariff relief and other benefits, which its pharma rivals have also won by agreeing to Trump’s drug pricing deals.