Regeneron strikes deal with white house to cut drug prices, offers gene therapy for free

Regeneron Pharmaceuticals has recently announced that they have reached an agreement with the Trump administration to lower drug costs for American patients, a deal that includes an unusual commitment to provide its newly approved gene therapy at no charge in the United States.

The Tarrytown, N.Y.-based biotech will offer Otarmeni (lunsotogene parvec-cwha), a first-in-class gene therapy for a rare form of genetic hearing loss caused by otoferlin gene variants, completely free to eligible U.S. patients. The FDA recently approved the therapy, formerly known as DB-OTO, for severe to profound hearing loss.

On the pricing front, Regeneron agreed to bring its Medicaid prices in line with what other developed nations pay, a nod to the longstanding frustration that American patients effectively subsidize lower prices abroad. Future medicines will also be priced in alignment with that peer-country benchmark. The company’s PCSK9 inhibitor Praluent (alirocumab) will be made available for direct patient purchase through TrumpRx.gov at most-favored nation pricing.

Co-founders Leonard Schleifer and George Yancopoulos joined President Trump at the White House to announce the agreement. Schleifer was direct about the motivation behind the deal: “For too long, American patients and taxpayers have shouldered a disproportionate share of the cost of biotechnology innovation, effectively subsidizing lower drug prices for other high-income nations that have not been paying their fair share. We hope that today’s agreement, coupled with effective trade policy, will lead to closer equilibration of prices around the globe while preserving innovation and lowering prices for Americans.”

Yancopoulos spoke to the significance of the Otarmeni commitment specifically: “Discovering and developing transformative new medicines is among the most challenging endeavors in all of science. Otarmeni, our first-of-its-kind gene therapy for a form of genetic hearing loss, is a powerful reminder of what becomes possible when brilliant minds have the resources and freedom to pursue difficult challenges. Our decision to provide Otarmeni for free in the United States serves to highlight our belief that the biopharmaceutical industry can be a genuine force for good in the world.”

In return, Regeneron won tariff relief for three years and an exemption from future pricing mandates, under a deal structured through the Department of Commerce. The company has already committed over $9 billion to domestic manufacturing and R&D infrastructure.

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Related Topics and Keywords

Biopharma, gene therapy, Phase 3, Regeneron