AbbVie Joins Trump Drug Pricing Effort, Pledges $100B in US R&D Investment

AbbVie announces a voluntary agreement with the Trump administration aimed at expanding access to medicines and lowering costs.

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AbbVie on Tuesday announced a voluntary agreement with the Trump administration aimed at expanding access to medicines and lowering costs for US patients while preserving domestic pharmaceutical innovation.1 Under the agreement, the company will offer lower prices for its drugs in Medicaid and commit $100 billion over the next decade to US-based research and development and capital investments, including manufacturing.

As part of the deal, AbbVie is expanding its direct-to-patient offerings through the TrumpRx program, making widely used medications such as brimonidine tartrate (Alphagan), brimonidine/timolol (Combigan), adalimumab (Humira), and levothyroxine sodium (Synthroid) more accessible to patients. The company said the initiative is intended to improve affordability and access for millions of Americans who rely on these treatments. Among the drugs listed, Fierce Pharma reported that only Humira remains a major revenue driver2; the ocular medications Alphagan and Combigan generated a combined $248 million in 2024, whereas the decades-old thyroid medication Synthroid did not appear in AbbVie’s annual report. Humira, meanwhile, continues to bring in substantial sales, though its revenue is declining following the loss of US patent exclusivity in 2023.

In exchange, the Trump administration granted AbbVie exemptions from tariffs and future price mandates, while continuing efforts to push for global pricing policies that reflect what the administration describes as the full value of US medical innovation.1 The company said the agreement addresses all 4 of Trump’s drug pricing priorities, though specific details beyond the announced provisions were not disclosed.

"AbbVie's mission is to make a remarkable impact for the patients we serve around the world through our innovative medicines," Robert A. Michael, chairman and CEO of AbbVie, said in the statement. "With approximately 29,000 U.S.-based employees and products treating 16 million Americans annually, we understand the complexity and access challenges in our healthcare system. AbbVie is following President Trump's call to action by reaching this agreement, allowing us to collectively move beyond policies that harm American innovation. Thank you to President Trump and his team for their leadership to help deliver cost savings and supporting our efforts to deliver innovative treatments for American patients."

Trump’s Push for Most-Favored-Nation Pricing Deals

The AbbVie agreement comes amid a broader push by the Trump administration to secure voluntary drug pricing concessions from major pharmaceutical manufacturers.3 To date, the administration has reached pricing agreements with most of the companies it contacted. Johnson & Johnson joined the list recently, announcing its agreement on January 9.4 With participation from Johnson & Johnson and now AbbVie, the Trump administration is waiting on one final response from Regeneron.

Central to these deals is a requirement that manufacturers offer most of their drugs to Medicaid at prices comparable to those charged internationally, alongside participation in a new federal initiative, TrumpRx.gov, designed to steer patients toward direct-from-manufacturer purchasing options.3

The agreements reflect a scaled-back version of Trump’s revived most-favored-nation agenda, relying on negotiated commitments rather than mandatory regulation. In exchange, participating companies receive exemptions from potential pharmaceutical tariffs and relief from future price mandates—leverage that analysts say has been key to bringing manufacturers to the table.

While administration officials and industry observers view the deals as a significant step in federal drug-pricing policy, major gaps remain, particularly for drugs purchased through Medicare and private insurance. As a result, questions persist about how much these voluntary agreements will ultimately reduce costs for patients and whether the model will lead to broader, enforceable price reforms across the pharmaceutical market.

References

1. AbbVie and Trump administration reach agreement to improve access and affordability for Americans. News release. AbbVie. January 12, 2026. Accessed January 13, 2026. https://news.abbvie.com/2026-01-12-AbbVie-and-Trump-Administration-Reach-Agreement-to-Improve-Access-and-Affordability-for-Americans
2. Kansteinor F. AbbVie inks latest White House drug pricing deal, scoring tariff reprieve as it makes $100B US investment pledge. Fierce Pharma. January 13, 2026. Accessed January 13, 2026. https://www.fiercepharma.com/pharma/abbvie-inks-latest-white-house-drug-pricing-deal-scoring-tariff-reprieve-it-makes-100b-us
3. Grossi G. Trump strikes 9 new pricing agreements as drugmakers navigate tariff, regulatory pressure. AJMC®. December 19, 2025. Accessed January 13, 2026. https://www.ajmc.com/view/trump-strikes-9-new-pricing-agreements-as-drugmakers-navigate-tariff-regulatory-pressure
4. Grossi G. J&J agreement brings 15 of 17 pharma companies into Trump's drug-pricing effort. AJMC. January 9, 2026. Accessed January 13, 2026. http://ajmc.com/view/j-j-agreement-brings-15-of-17-pharma-companies-into-trump-s-drug-pricing-effort