Regeneron announces agreement with U.S. government to help lower drug costs

Regeneron (REGN) Pharmaceuticals announced an agreement with the U.S. government to help lower prices of several of its current and future medicines and offer a new medicine for free in the U.S. “As part of the agreement, Regeneron will lower Medicaid prices based on those in other developed countries and will align U.S. prices of future medicines with prices set in that defined group of other countries. Regeneron will also utilize the TrumpRx.gov platform to allow eligible patients to directly purchase Praluent, Regeneron’s PCSK9 inhibitor medicine, at the most-favored nation price. Additionally, Regeneron will offer its gene therapy Otarmeni, which was recently approved by the U.S. Food and Drug Administration, for free in the U.S. to treat people with severe to profound and profound hearing loss due to variants of the otoferlin gene,” the company stated. “Regeneron will not be subject to future pricing mandates and will receive tariff relief for three years through an agreement with the U.S. Department of Commerce under which Regeneron has committed to certain activities and investments to support R&D and manufacturing in the U.S. Regeneron is one of the largest manufacturers of biologics in the world and has already committed over $9 billion of U.S.-based manufacturing and R&D infrastructure investments in coming years. Additional terms of the agreement remain confidential,” the company added.