Nearly a year after launching a Section 232 investigation, the White House issued a proclamation to impose tariffs of up to 100% on certain branded medicines imported into the United States.

The 100% tariff applies to “patented pharmaceutical products and ingredients” and will take effect in two stages: “120 days for certain large companies, and 180 days for smaller companies.” However, the terms include a number of exemptions and caveats which will limit the new duties’ impact:

• EXEMPT: generic and biosimilar products, including related ingredients
• EXEMPT: orphan drugs, drugs for animal health, and certain specialty pharma products if they “are from trade deal countries or meet an urgent public health need”
• EXEMPT (until Jan. 2029): drugmakers that have struck pricing agreements with the Trump administration (16 so far, with Regeneron in the works)
• 20% (until April 2030): tariff rate if a drugmaker strikes an onshoring agreement with the Department of Commerce
• 15%: tariff rate if the product is imported from the European Union, Japan, Korea, Switzerland or Liechtenstein

One wrinkle in the announcement must still be ironed out: The tariff rate for products from the United Kingdom. U.S. officials say duties will be 10%, while the UK reports a tariff exemption lasting three years as part of a broader agreement announced yesterday.

While blunted in effect, the tariff represents added U.S. pressure on countries to increase reimbursement and drugmakers to lower domestic prices and re-shore manufacturing stateside. PhRMA and BIO swiftly published statements in opposition, and the Midsized Biotech Alliance ​of America noted how the duties create an “unfair two-tiered system of exemptions” that benefits larger drugmakers.

According to reports, the White House is seeking to hold more talks with smaller drugmakers to sign deals on pricing and manufacturing. Any phone calls to Australia will likely go to voicemail, with the health minister saying the Land Down Under is sending the “clearest of possible messages” that “we are not negotiating” to raise reimbursement for prescription drugs.

– Andrew Wishon, Editor-in-Chief

On Wednesday, the FDA approved Eli Lilly’s once-daily oral GLP-1 obesity drug, introducing another needle-free option in the fast-growing weight loss market. The pill, branded as Foundayo, sets up an immediate pricing comparison with rival Novo Nordisk, which has been expanding its own discounting efforts.

Lilly said the drug will be offered through its LillyDirect platform at lower cash-pay prices, with additional savings for commercially-insured patients. The company is positioning the pill not only as a more convenient alternative to injectables, but as part of a broader push to expand direct access and reduce out-of-pocket costs. Lilly said some patients may be eligible for insurance coverage, adding that eligible Medicare Part D beneficiaries could access the drug for as little as $50 per month beginning as soon as July 1, 2026.

The launch comes just days after Novo Nordisk rolled out new discounted access options for Wegovy, including a subscription-style model aimed at self-pay patients. Under the program, patients can lock in lower monthly prices by committing to multi-month treatment plans through telehealth providers, bringing costs down relative to standard list prices.

These moves highlight an increasingly direct pricing battle between the two companies, with competition extending beyond clinical performance to include affordability, predictability and patient access. As more patients pay out of pocket for GLP-1 therapies, both drugmakers are experimenting with pricing models that treat patients less like traditional beneficiaries, and more like long-term consumers.

– Stephen Tellone, Associate Director

As President Trump continues to dial up the Most Favored Nation pricing pressure – whether through pharma company deals or relentlessly urging Congress to pass a bill – many industry leaders are speaking out to try and shape the post-MFN frontier.

MFN’s effects have been most acutely felt in the EU. Reuters reported this week that in the 10 months since President Trump’s MFN executive order, drug launches in EU markets fell by nearly 35%. Other companies have pulled their drugs from some European markets altogether.

Industry leaders have grown increasingly vocal amid the post-MFN market uncertainty. Eli Lilly CEO David Ricks opposed making MFN the law of the land, calling it “bad policy.” Ricks also called on the UK’s National Health Service to raise prices and phase out a national rebate program as conditions of resuming investment in the UK market.

Other industry CEOs have echoed Ricks’ call. Boehringer Ingelheim’s Shashank Deshpande urged EU markets to increase incentives to make industry investments attractive once again, in the wake of MFN. Leaders at Bayer, Novartis and Pfizer similarly warned that Europe’s pricing and regulatory environment is causing the EU to fall behind, especially U.S. leaders push for increased pharmaceutical manufacturing in America.

– Rachel Bridges, Senior Director

• No events of note next week.

• “The rising cost of health care might have predated Trump’s second term, but his policies are exacerbating it. The consequences aren’t subtle, either. They’re being felt every day by ordinary Americans forced to consider what they are willing to give up just to stay healthy.” – Lisa Jarvis, Bloomberg
• “Good intentions are not enough. Government policies that suppress prices may generate headlines, but they rarely generate growth.” – Gary J. Salamido, Wilmington Star-News
• “I get it. We have to pay for innovation somehow. The U.S. is the biggest and most lucrative market in the world. I don’t have a solution, but I know for sure that withholding important medicines from patients who desperately need them isn’t it.” – Annalee Armstrong, BioSpace

• Healthcare has emerged as Americans’ top domestic concern for the first time in several years, with voters reporting rising costs and access challenges ahead of the 2026 elections. The Hill: Health care polling as top issue for first time since 2020: Gallup.
• Independent pharmacies say the FTC’s settlement with Express Scripts has led to tougher contract terms, raising concerns that PBM reforms meant to curb anticompetitive practices may be shifting pressure further down the supply chain. Modern Healthcare: Express Scripts-FTC deal making matters worse, pharmacies say.
• Senior HHS official Chris Klomp warned that the U.S. is in an intensifying competition with China over biotech leadership, framing drug development and manufacturing capacity as a national security priority. Endpoints: Top Trump health official describes ‘war’ with China over biotech.
• Pending MFN pricing deals and demonstration models are complicating CMS’s ability to conduct Medicare drug price negotiations, adding uncertainty for manufacturers navigating parallel affordability initiatives. Pink Sheet: Most Favored Nation Pricing Deals, Demos Complicate Medicare Negotiation Prospects.
• Rare disease advocates and biotech leaders are urging the Trump administration to restore regulatory clarity at the FDA. BioSpace: Rare Disease Leaders Call for Regulatory Clarity as FDA Balances Urgency With Rigor.
• A new episode of the Becker’s Healthcare Podcast, sponsored by Amgen, examines how clinicians are working to close gaps in osteoporosis care. Becker’s Hospital Review: Closing the Gap: Advancing Osteoporosis Care Across Practice Settings.
• One year after sweeping layoffs across HHS, former officials and staff describe lingering operational strain and morale challenges. Healthcare Dive: One year after HHS layoffs, a department in disarray.
• Biotech advocacy group, Incubate, is pushing lawmakers to view U.S. drug development as a national security and competitiveness issue. Fierce Biotech: ‘We need to put some bad ideas to bed’: Inside Incubate’s battles for biotech on Capitol Hill.