Bristol‑Myers Squibb (BMS) announced an agreement with the U.S. Department of Health and Human Services that will make its anticoagulant Eliquis (apixaban) available at no cost to Medicaid beneficiaries beginning January 1, 2026. The deal also grants BMS a three‑year tariff exemption, requires the company to donate more than seven tons of Eliquis’ active pharmaceutical ingredient to the U.S. strategic reserve, and confirms a $40 billion investment in U.S. manufacturing that was pledged earlier in 2025.
The agreement is framed within the broader drug‑pricing framework that was initiated during the Trump administration, but it is being executed under the current administration. The policy framework seeks to align U.S. drug prices with those in other wealthy nations and to improve affordability for low‑income patients, and the BMS deal is one of nine similar agreements struck on December 19, 2025.
Eliquis generated $13.3 billion in sales in 2024 and contributed roughly $3.7 billion to quarterly revenue. The drug’s U.S. patents are expected to expire between 2026 and 2027, with generic competition anticipated in April 2028. By providing Eliquis free to Medicaid patients, BMS is proactively cushioning the anticipated revenue impact of the loss of exclusivity while securing tariff relief that protects the company from future pricing mandates for three years.
Strategically, the tariff exemption reduces BMS’s exposure to potential future U.S. pricing regulations, while the free‑Medicaid provision expands access to a life‑saving medication for millions of low‑income Americans. The $40 billion U.S. manufacturing investment underscores the company’s commitment to domestic production and supply‑chain resilience, positioning BMS to better manage the competitive pressures that will arise when generics enter the market.
The BMS agreement is part of a broader trend in which pharmaceutical companies exchange price concessions for tariff relief or other regulatory benefits. The nine‑company deal signed on December 19, 2025 signals that the U.S. government is actively negotiating drug‑price reductions in exchange for trade‑policy concessions, a dynamic that could reshape pricing strategies for other high‑margin drugs in the coming years.
CEO Christopher Boerner said the company is “taking direct action to improve the lives of millions of Americans, ensuring our nation’s most vulnerable have access to this critical medicine at no cost.” The statement highlights BMS’s focus on patient access while balancing the company’s long‑term financial objectives.
Overall, the agreement positions BMS to manage the impending loss of exclusivity for Eliquis, secure tariff relief, and expand access to a key cardiovascular therapy, reinforcing the company’s strategic commitment to both patient care and domestic manufacturing.
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