Pfizer to share overseas drug revenue with HHS under pricing deal

Pfizer has agreed to share a portion of the additional revenue it generates from higher drug prices overseas with the U.S. Department of Health and Human Services, according to newly released contract documents. This provision is part of Pfizer's "most favored nation" drug-pricing agreement with the Trump administration, which applies to medicines already on the market and runs from January 1, 2026, to January 20, 2029.

The exact percentage of revenue Pfizer must share, as well as the specific medicines covered and other terms, have been redacted from the documents. Consumer advocacy group Public Citizen obtained the contract through a Freedom of Information Act lawsuit and released it on Saturday, providing more insight into how the administration's efforts to lower U.S. drug prices are connected to increasing prices in overseas markets.

The revenue shared with HHS is intended to lower costs for U.S. patients and taxpayers, but the exact distribution and spending of the funds are not specified in the contract. White House spokesperson Kush Desai stated that the revenue-sharing provisions aim to benefit American patients rather than drugmakers, while a Pfizer spokesperson emphasized that the agreement supports lower patient prices, redistributes global research and development costs, and ensures a more predictable investment environment.

The policy is also linked to U.S.-U.K. trade negotiations, as the two countries reached an agreement in December that allows tariff-free medicine imports in exchange for lower rebates paid by drugmakers to Britain's National Health Service. The U.K. government plans to increase its spending on medicines by 25%.