Gilead and U.S. Government Enter Agreement to Lower Costs of Medicines for Americans

Core Viewpoint - Gilead Sciences, Inc. has entered into an agreement with the U.S. government aimed at reducing drug costs for Americans, emphasizing the company's commitment to innovation, affordability, and global health leadership [1][2]. Group 1: Agreement Details - The three-year agreement addresses President Trump's requests for a new pricing strategy that prioritizes American patients, ensuring the U.S. does not bear a disproportionate share of global healthcare costs [2][8]. - Key components of the agreement include discounts on certain existing medicines within the U.S. Medicaid program, pricing future medicines at parity with other developed nations, and launching a Direct-to-Patient Program for Gilead's Hepatitis C treatment, Epclusa [8]. Group 2: Financial Impact and Investments - Gilead anticipates that the financial impact of the agreement will be manageable starting in 2026 and beyond [3]. - The company plans to invest $32 billion in U.S.-based manufacturing, R&D, and infrastructure over the next five years, which is projected to generate $43 billion in national economic value and create over 3,000 direct and indirect jobs [5]. Group 3: Global Health Commitment - The agreement reinforces America's leadership in global health and biomedical innovation, building on Gilead's partnership with the U.S. Department of State to provide its HIV prevention medicine, lenacapavir, at no profit to up to two million individuals in severely affected countries over the next three years [4].