Pharmaceutical giant GSK has reached a significant voluntary agreement with the United States government, pledging to reduce the cost of prescription medicines and expand treatment access for millions of Americans.
Details of the Landmark Agreement
The deal, announced on Monday 22 December 2025, comes amid intensifying pressure on global drugmakers over pricing, tariffs, and domestic investment. The London-listed firm stated the agreement covers medicines used by over 40 million US patients living with respiratory conditions like asthma. It also delivers on all four actions requested by former President Donald Trump in a letter sent to drugmakers in July.
Under the new terms, GSK will cut prices for specific medicines supplied through the Medicaid programme. The company has committed to launching new products in the US with a more 'balanced' pricing strategy. Furthermore, GSK will make most of its portfolio available via a direct purchasing platform, which it says could offer savings of up to 66 per cent and broaden access beyond traditional reimbursement routes.
Strengthening US Supply Chains and Investment
Alongside the pricing concessions, the pact includes commitments designed to shore up American drug supply chains. As part of the US administration’s Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), GSK will secure a US-based reserve of albuterol, a critical ingredient in many asthma inhalers.
The agreement covers both GSK and its HIV-focused joint venture, ViiV Healthcare. It aims to provide clarity on US pricing rules while shielding both entities from so-called 'section 232' tariffs for a period of three years. Detailed commercial terms have not been publicly disclosed.
Chief executive Emma Walmsley commented: “Through this agreement, GSK will ensure patients have access to the current portfolio of respiratory medicines while bringing the next wave of innovation to American patients.”
Broader Context of US Scrutiny and Investment
This deal lands as drug pricing in the US faces mounting scrutiny, alongside rising trade tensions and threats of tariffs on imports. It also follows GSK's announcement in September of plans to invest over $30 billion (£22.4bn) in US research and development over the next five years.
That substantial investment package included a $2bn commitment to new facilities, AI, and advanced digital technology, expected to generate hundreds of high-skilled jobs. GSK currently employs around 15,000 people in the US.
While the scale of US spending has drawn comparisons to the group's smaller UK R&D budget, GSK has insisted this does not reflect a loss of confidence in Britain, pointing to a roughly 50 per cent increase in UK investment in recent years. The agreement helps reassure investors about the company's exposure to tariffs and pricing reforms, following an upgrade to its full-year guidance in October.
