AbbVie secures agreement with the Trump administration on medication pricing in return for tariff reductions

AbbVie Reaches Drug Pricing Agreement with Trump Administration

AbbVie, headquartered in North Chicago, has announced a new arrangement with the Trump administration regarding medication pricing. This deal grants the pharmaceutical company relief from tariffs and future pricing regulations, as revealed in a statement released Monday evening.

As part of this voluntary pact, AbbVie will provide reduced-cost medications through Medicaid, the government health insurance program serving individuals with limited income and disabilities. Additionally, the company has committed to investing $100 billion over the next ten years in research, development, and manufacturing within the United States.

The agreement also includes plans for AbbVie to expand direct-to-consumer sales via TrumpRx, an online platform designed to let patients purchase medicines straight from manufacturers, according to the Associated Press.

AbbVie credited the Trump administration’s decision to exempt the company from tariffs and future price controls as a key factor in making this deal possible.

Robert A. Michael, AbbVie’s chairman and CEO, stated, “By entering into this agreement, AbbVie is answering President Trump’s call to support American innovation and move past policies that have hindered progress.”

Medications such as Humira, Alphagan, Synthroid, and Combigan are among those AbbVie intends to make available through TrumpRx.

Broader Industry Participation

In recent months, the Trump administration has reached similar agreements with more than a dozen other pharmaceutical companies, including Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi.

These deals follow a presidential executive order issued in May, which aimed to implement “most-favored-nation” pricing for prescription drugs in the U.S.—meaning Americans would pay no more than the lowest price charged for the same medicines in comparable countries. Over the past year, President Trump had threatened significant tariffs on pharmaceutical companies to encourage lower prices.

Expansion of U.S. Operations

Earlier on Monday, AbbVie revealed plans to grow its manufacturing presence in the U.S. by acquiring a facility in Arizona. The company also shared last year that it would build a new $195 million facility near its North Chicago headquarters.

About AbbVie

Since its separation from Abbott Laboratories in 2013, AbbVie has grown to employ around 29,000 people in the United States. The company is recognized for producing Humira, a medication used to treat conditions such as rheumatoid arthritis, Crohn’s disease, and ulcerative colitis. Other notable drugs from AbbVie include Skyrizi for plaque psoriasis and Rinvoq for rheumatoid arthritis.