Sanofi announced a voluntary agreement with the U.S. administration that will lower the prices of its diabetes, cardiovascular and neurological drugs sold to Medicaid and cash‑pay patients by 61 % and other treatments by nearly 70 %. The deal is part of President Trump’s “most‑favored‑nation” pricing initiative, which seeks to align U.S. drug prices with those in other high‑income countries.
Under the terms of the agreement, Sanofi will list its most popular products on the new TrumpRx.gov website and will launch new medicines at prices no higher than those in other wealthy nations. In return, the company receives a three‑year exemption from the administration’s planned pharmaceutical tariffs, provided it continues to invest in U.S. manufacturing and research and development. Sanofi has already committed $20 billion to U.S. operations through 2030, underscoring its long‑term commitment to the domestic market.
Sanofi’s management emphasized that the agreement does not affect its growth strategy or financial outlook for the next three years. The company’s Q3 2025 earnings report showed sales of €12,434 million and net income of €2,802 million, a slight year‑over‑year increase, and the company reiterated its high‑single‑digit sales growth guidance. The pricing concessions are therefore framed as a short‑term headwind that will be offset by tariff savings and continued investment in U.S. capacity.
While the discount structure could reduce revenue from Sanofi’s core specialty‑care portfolio, the company’s statement that the deal does not impact its financial outlook suggests that the impact will be limited. The tariff exemption provides a cost offset, and the $20 billion U.S. investment is expected to support future product development and market access. Specific drugs subject to the discounts were not disclosed, but the categories include key diabetes, cardiovascular and neurological products that represent a significant portion of Sanofi’s revenue mix.
The agreement is part of a broader initiative that has already attracted nine companies on December 19, bringing the total to 14 of 17 contacted by the administration. Other participants include Pfizer, AstraZeneca, Eli Lilly and Novo Nordisk. The MFN initiative is designed to prevent the U.S. from subsidizing global drug prices and to encourage other nations to pay more, while providing U.S. companies with tariff relief and a platform for price transparency.
In summary, Sanofi’s agreement signals a strategic alignment with U.S. policy that balances price concessions with tariff relief and substantial domestic investment. The company’s assurance that the deal will not alter its growth trajectory, combined with the financial cushioning from tariff exemptions, suggests that the long‑term impact on its earnings outlook will be modest, while the move may strengthen its regulatory standing and market presence in the United States.
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