Teva and Trump Administration Announce Intent to Reach Agreement around Affordable Medicines and Supply Chain Security for Patients in the U.S.

On August 31, 2026, Teva Pharmaceuticals and the Trump Administration announced their intention to reach an agreement aimed at reducing the cost of certain medicines for Medicaid patients in the United States. This partnership seeks to encourage continued investment in medical research and manufacturing in the U.S.

Teva USA's President, Chris Fox, expressed the company's appreciation for the opportunity to collaborate with President Trump and his Administration. The goal of this collaboration is to improve patient access to affordable medications while simultaneously fostering continued investment in the pharmaceutical industry. Teva has been committed to delivering cost-effective medicines to American patients, and it shares the Administration's dedication to making these medicines more accessible and affordable.

The proposed agreement would align U.S. Medicaid pricing with that of leading developed countries under the GENEROUS (GENErating cost Reductions fOr U.S. Medicaid) framework. This would result in lower drug prices for patients covered by Medicaid. Moreover, the agreement would entail a Most-Favored-Nation (MFN) commitment for upcoming innovative product launches, ensuring continued competitive pricing.

In addition to the pricing aspects, Teva has pledged to maintain a reserve of specific active pharmaceutical ingredients (APIs) for public health purposes. This commitment also encompasses ongoing investment into U.S. pharmaceutical manufacturing capabilities. However, the conditions of these negotiations remain confidential for now.