Biopharmaceutical company AbbVie has reached an agreement with the Trump administration to invest $100 billion in its U.S. operations and lower Medicaid prices in exchange for tariff and pricing exemptions. The company said Monday it plans to direct the funding toward U.S.-based research and development, capital investments, and manufacturing over the next 10 years.
AbbVie said the investment will include expanded manufacturing and will also broaden direct-to-patient offerings through TrumpRx for widely used medicines such as Alphagan, Combigan, Humira, and Synthroid. Under the three-year agreement, AbbVie will receive exemptions from tariffs and future pricing mandates, the company said, adding that additional terms of the deal remain confidential.
The announcement follows a previous $10 billion U.S. investment commitment made last April, also focused on research, development, and production. It remains unclear whether that earlier pledge will be folded into the newly announced $100 billion outlay.
READ: Pharma stocks surge after Trump announces exemption for generic drugs from US tariffs (October 9, 2025)
“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 CEO Robert Michael said in the company’s announcement. “AbbVie is following President Trump’s call to action by reaching this agreement, allowing us to collectively move beyond policies that harm American innovation.”
Michael’s comment referenced the administration’s pressure campaign launched last summer, when President Donald Trump sent letters to 17 of the world’s largest drugmakers outlining steps they needed to take to rein in drug costs in the United States. The president’s so-called most-favored-nation pricing strategy aims to align U.S. prescription drug prices with lower prices offered in other comparable developed countries.
Along with AbbVie, the letters were addressed to Amgen, AstraZeneca, Boehringer Ingelheim, Bristol Myers Squibb, Eli Lilly, Merck KGaA’s EMD Serono, Roche’s Genentech, Gilead Sciences, GSK, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Regeneron, and Sanofi.
In December, the administration also reached agreements with several other major pharmaceutical companies, including Roche and Merck, to cut the prices of certain medicines for the government’s Medicaid program and for cash-paying consumers.
The agreement with AbbVie comes amid broader questions about tariffs and pharmaceutical supply chains. In October, Trump reportedly said he would not impose tariffs on generic drugs imported from foreign countries. Generic medicines account for about 90% of all prescriptions in the United States and are a major source of affordable treatment for millions of patients, with many supplied through imports. The decision to exclude generics has been attributed to efforts to prevent disruptions in the medicine supply chain and protect vulnerable populations who rely on low-cost medications.