Pfizer (PFE.US) overseas price increase gains to be shared with the U.S. government: "Most Favored Nation" contract revealed, over twenty transactions still confidential

According to reports, if Pfizer (PFE.US) is able to increase drug prices overseas, the U.S. Department of Health and Human Services (HHS) will receive a share of the resulting additional revenue.

This “most favored nation” contract was released last Saturday (September 19) by the consumer rights watchdog Public Citizen, which obtained it after filing a Freedom of Information Act lawsuit. According to reports, the organization published documents related to contracts with Pfizer and Eli Lilly (LLY.US), while more than 20 other deals remain confidential.

The report indicates that the contract shows Pfizer agreed to share a portion of the net incremental income it earns from raising prices abroad with HHS. This clause applies to drugs already on the market and is valid from January 1, 2026 to January 20, 2029. The profit-sharing ratio, the drugs involved, and other details have all been redacted.

According to the report, White House spokesperson Kush Desai said in a statement: “President Trump has made it very clear that this is not a one-way street: foreign drug prices will go up, and American patients will no longer have to bear the burden of financing global innovation alone. The purpose of these overseas revenue provisions is to ensure that the incremental revenue from price increases overseas benefits American patients, not pharmaceutical companies.”