regeneron The White House announced Thursday that it has agreed to lower U.S. drug prices for some Americans as part of a deal with President Donald Trump.
The biotech company also plans to offer the first deafness gene therapy for free to eligible U.S. patients following regulatory approval of the product early Thursday.
Regeneron is the latest in a string of major drug companies to make concessions on pricing for new and existing drugs under an agreement with President Trump. These agreements are part of his “most-favored-nation” effort to tie U.S. drug prices to the lowest prices in other developed countries.
The deal also waives Trump’s proposed tariffs, including up to 100% tariffs on some medicines, for three years. The Trump administration has closed 17 deals so far and is negotiating more with other biotech and pharmaceutical companies, CMS Deputy Administrator Chris Klomp said at a White House event Thursday.
The deal with Regeneron comes just hours after the Food and Drug Administration approved the company’s gene therapy Otalmeni, which restores hearing to a small number of deaf children. The treatment received accelerated approval under the FDA’s so-called National Priority Voucher program.
This drug targets an extremely rare genetic disease caused by a mutation that prevents the body from producing a protein needed for hearing. This is a major advance for some patients who have long relied on cochlear implants.
Analysts at Piper Sandler predicted in a March note that peak gene therapy sales would be $130 million.
–CNBC’s Angelica Peebles contributed to this report.
