AbbVie agrees three-year drug pricing pact, pledges $100 billion investment

AbbVie announced a voluntary three-year agreement with the U.S. administration to lower prices for certain medicines, expand direct-to-patient offerings and invest roughly $100 billion in U.S. research, development and capital spending over the next decade. In return the company will receive exemptions from tariffs and relief from future pricing mandates tied to the three-year pact, according to the company.

Under the arrangement, AbbVie said it will offer lower prices for specified drugs through a government portal known as TrumpRx and will make "low prices" available in Medicaid. The company identified widely used medicines in the program, including HUMIRA (adalimumab), SYNTHROID (levothyroxine), COMBIGAN and ALPHAGAN for glaucoma patients. AbbVie declined to disclose the exact discount levels or a comprehensive list of covered products, saying further terms are confidential.

The company framed the deal as serving two goals: expanding patient access to medicines and protecting domestic pharmaceutical innovation. Robert A. Michael, chairman and chief executive officer of AbbVie, said, "AbbVie is following President Trump’s call to action by reaching this agreement, allowing us to collectively move beyond policies that harm American innovation." The company also characterized the agreement as addressing the administration's drug pricing priorities while preserving incentives for future research.

AbbVie's financial heft gives the pact particular significance. The company has a market capitalization of about $389 billion and trailing 12-month revenue near $59.6 billion, making its pricing moves material for patients, payers and investors. Company officials did not offer guidance on how the concessions will affect short-term earnings or margins, leaving analysts to weigh potential tradeoffs between volume gains from lower prices and pressure on revenue.

Policy makers are reviving a most favored nation concept intended to align U.S. consumer drug prices with lower prices abroad, and this pact fits into a broader push to secure voluntary price concessions from major manufacturers. Since mid-2025, the administration signaled to large drugmakers that lower prices were expected; many companies have reached similar short-term agreements that include tariff relief in exchange for price reductions. AbbVie's commitment of roughly $100 billion in U.S. investment is among the largest corporate pledges tied to such deals, and officials described the spending as focused on domestic R&D, manufacturing and capital projects over the next decade.

Despite the headline figures, important operational details remain opaque. The exact size of discounts, the mechanics for delivering drugs to patients through TrumpRx, and the final roster of covered medicines were not disclosed. It is also unclear how Medicaid price adjustments will be implemented and whether state programs will see measurable savings. The three-year term leaves open questions about what protections, if any, will persist after the agreement expires.

For patients who rely on branded therapies such as HUMIRA and levothyroxine, the deal could bring lower out-of-pocket costs if the promised discounts translate quickly into pharmacy pricing. For investors and industry observers, the accord highlights a new model of bargaining between government and large drugmakers that pairs temporary pricing concessions with long-term investment commitments and regulatory relief. The balance of those tradeoffs will shape both access to medicines and the future contours of pharmaceutical innovation in the United States.