Sanofi Signs Agreement with Washington to Reduce Drug Prices
The French pharmaceutical company has reached an agreement with the Trump administration to lower the cost of several treatments for American patients. The company also commits to boosting its production capabilities in the United States.
Significant Price Reductions for Key Medications
According to the press release dated December 19, 2025, the agreement between Sanofi and the U.S. government stipulates that certain drugs from the group will be offered to state Medicaid programs at the same price as in other high-income countries. This measure is expected to lead to an average price reduction of 61% for treatments used in diabetes, cardiovascular and neurological diseases, as well as cancer. Additionally, the group states that American patients will be able to access other medications through direct distribution platforms like TrumpRx.gov, with an average savings of nearly 70% on certain treatments for infections and cardiovascular and diabetic diseases.
Investment and Job Creation in the U.S.
As part of this voluntary and confidential agreement, Sanofi indicates that it will invest $2.3 billion over three years to expand its bioproduction capacities in the United States. The group also plans to create 1,000 new jobs in research and development in the U.S. In return, the company will benefit from a three-year period without the application of Section 232 tariffs on the products it imports to the United States. The French laboratory currently has more than 15 sites in the country and employs over 13,000 people, including more than 2,200 researchers across six research and development campuses.
Compliance with Presidential Requests
According to Sanofi, this agreement meets the four demands made by President Trump in a letter dated July 31, 2025. The group specifies that the details of the agreement will not be disclosed and that it will not impact its growth strategy or financial outlook during the three-year period covered by the agreement. CEO Paul Hudson emphasizes that this initiative aims to immediately reduce drug prices for Americans while strengthening the United States' role in biopharmaceutical innovation.
