Pfizer agreed to give HHS a portion of its increased revenue if it is able to charge higher drug prices abroad, according to a “most favored nation” contract released Sept. 19, Bloomberg reported.
The contract, released by consumer watchdog Public Citizen and obtained from a Freedom of Information Act lawsuit, showed documents related to Pfizer and Eli Lilly contracts, though some information is redacted. More than two dozen other deals remain confidential.
Here is what to know.
1. Pfizer agreed to share a portion of its net increased revenue from charging higher prices abroad, effective Jan. 1, 2026, through Jan. 20, 2029. The rate and medicines included were redacted.
The company said it stands “by our belief that the agreement Pfizer voluntarily reached with the administration last September is a win for American patients” and achieves priorities to lower prices for patients, redistribute global research and development costs, and create a predictable investment environment, Pfizer spokesperson Amy Rose told Bloomberg.
2. The contract states that the money shared with HHS will be used “for the purpose of lowering costs for U.S. patients and taxpayers.” No additional details were provided.
“President Trump has been very clear that this is not a one-way street: Foreign prices are going to increase and American patients are no longer going to solely bear the burden of funding global innovation,” White House spokesperson Kush Desai said in a statement to Bloomberg. “The foreign-revenue provisions are intended to ensure incremental revenue from higher prices abroad benefit American patients, not drugmakers.”
3. Due to redactions, it is unclear whether Eli Lilly agreed to similar terms.
