Prime Highlight
- AbbVie has committed to invest $100 billion over the next decadein U.S.-based research, development, and manufacturing to strengthen domestic pharmaceutical supply chains.
- Under the agreement, AbbVie will provide lower drug prices for Medicaidand expand direct-to-patient sales through the TrumpRx platform.
Key Facts
- The deal covers high-demand medicines such as Humira and Synthroid, making them more affordable for millions of Americans.
- AbbVie joins 16 of 17 major drugmakersthat have agreed to the federal plan, which includes tariff exemptions and protection from future pricing mandates.
Background
AbbVie has signed a major agreement with the Trump administration, committing to invest $100 billion in domestic research, development and manufacturing over the next decade. The move makes AbbVie the 16th drugmaker to join a federal plan to rebuild pharmaceutical supply chains and lower drug prices.
Under the three-year deal, AbbVie will offer lower prices for several medicines in the Medicaid programme and expand its direct-to-patient sales through the TrumpRx platform. In return, the government has exempted the company from pharmaceutical import tariffs and shielded it from future pricing mandates.
The agreement covers high-demand medicines such as Humira and Synthroid. According to the company, millions of Americans will now have access to these treatments at lower costs.
The investment pledge focuses on reshoring production capacity. AbbVie said it will spend the money on US-based research, new plants and upgrades to existing manufacturing sites. The company aims to make the supply chain more stable and reduce dependence on overseas production.
The wider industry is also shifting. So far, 16 of the 17 large drugmakers targeted by the administration have accepted the same most-favoured-nation pricing model. These include Johnson & Johnson, Pfizer, Merck, Novartis, Eli Lilly and Novo Nordisk.
Johnson & Johnson earlier announced its own $55 billion US investment plan through 2029. New facilities in Pennsylvania and North Carolina are planned, along with approved tariff exemptions. Only Regeneron has yet to join the programme.
The White House says the policy will stop “global freeloading”, where higher US drug prices offset lower prices abroad. The government wants companies to align domestic prices with the lowest international levels.
Executives now face pressure to keep their promises. The success of these investments will decide whether the U.S. can manufacture affordable medicines domestically while safeguarding its healthcare supply chain.
