Business
Gilead and U.S. Government Enter Agreement to Lower Costs of Medicines for Americans
Agreement addresses all requests by President Trump to reduce drug costs in the U.S., encourage global investment and protect American biopharma leadership
About this update from Gilead Sciences, Inc.
[{"type":"text","content":"\nAgreement addresses all requests by President Trump to reduce drug costs in the U.S., encourage global investment and protect American biopharma leadership\n\nCompany reinforces commitment to U.S. manufacturing and American jobs\n\n FOSTER CITY, Calif.--(BUSINESS WIRE)--\nGilead Sciences, Inc. (Nasdaq: GILD) today announced an agreement with the U.S. government designed to reduce drug costs for Americans, reinforcing the company’s long-standing commitment to U.S.-based innovation, affordability, and global health leadership.\n\n“This agreement reflects a foundational commitment to both affordability and future innovation, a commitment that we have long seen as essential to shaping the future of healthcare,” said Daniel O’Day, Chairman and Chief Executive Officer, Gilead Sciences. “The progress toward expanding access and increasing investment in U.S. innovation will meaningfully contribute to America’s health and economic priorities. Gilead Sciences will continue to work with the Administration in service of these priorities for the benefit of generations to come.”\n\nAs part of the three-year agreement, Gilead addresses all requests by President Trump to implement a new pricing strategy that prioritizes American patients, ensuring the U.S. no longer bears a disproportionate share of global healthcare costs. This includes:\n\n\nDiscounts on certain existing medicines within the U.S. Medicaid program, similar to what is paid in comparably developed nations, including select medications to treat HIV, Hepatitis C, Hepatitis B and COVID-19.\n\n\nPricing future medicines at parity with other key developed nations.\n\n\nLaunching a Direct-to-Patient Program where individuals with a prescription can obtain Gilead’s Hepatitis C treatment and cure, Epclusa®, at a discounted cash price. Gilead will make Epclusa available via TrumpRx.gov where American patients can be connected directly with Gilead’s Direct-to-Patient Program.\n\n\nAn agreement with the U.S. Department of Commerce to be exempt from Section 232 pharmaceutical tariffs for three years, provided Gilead further invests in manufacturing in the United States.\n\n\nBased on these terms, the company expects the financial impact to be manageable in 2026 and beyond. Additional terms of the agreement with the U.S. government remain confidential.\n\nThis agreement reinforces America’...