Pfizer has agreed to share a portion of the incremental net revenue it generates from higher drug prices overseas with the U.S. Department of Health and Human Services under its Most Favored Nation pricing agreement, according to newly released documents. The provision covers medicines already on the market and runs from January 1, 2026, through January 20, 2029, though the revenue-sharing percentage and the specific drugs covered remain redacted, and HHS says the money will be used to lower costs for U.S. patients and taxpayers. The arrangement builds on Pfizer's September 2025 agreement with the U.S. government, in which the company agreed to make certain U.S. drug prices more comparable with those in other developed countries in exchange for a three-year exemption from certain Section 232 tariffs, subject to additional U.S. manufacturing investment. Pfizer generated $62.6 billion of revenue in 2025, with 41 percent coming from international operations, and international revenue rose 2 percent that year even as total revenue declined 2 percent. The revenue-sharing provision means Pfizer will not retain all of the incremental benefit from raising prices abroad, and the undisclosed sharing rate makes the financial benefit impossible to quantify precisely at this stage.
Pfizer IncPfizer must share incremental overseas drug-pricing revenue with HHS under its MFN deal, capping the benefit of raising prices abroad
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