GSK Secures U.S. Government Agreement to Reduce Respiratory Drug Prices by Up to 66% for 40 Million Americans
Key Insights
GSK has entered into an agreement with the U.S. Administration to lower prescription medicine costs for American patients, specifically targeting respiratory treatments for over 40 million Americans with asthma (search) and COPD (search).
The company will offer savings of up to 66% on most of its inhaled respiratory portfolio through a direct purchasing platform and reduce prices for certain medicines in Medicaid.
As part of the President's Strategic Active Pharmaceutical Ingredients Reserve, GSK will secure a U.S. reserve of albuterol, the active ingredient used in inhalers for asthma (search) and COPD (search) symptom relief.
GSK plc has announced a comprehensive agreement with the U.S. Administration to significantly reduce prescription medicine costs for American patients, with particular focus on respiratory treatments that serve more than 40 million Americans suffering from conditions such as asthma (search) and chronic obstructive pulmonary disease (search) (COPD (search)).
The agreement delivers on all four actions requested by President Trump in his July 31st letter and establishes a framework that will make GSK's broad respiratory portfolio more accessible to patients across the United States.
Pricing Reductions and Direct Access Platform
Under the terms of the agreement, GSK will implement several cost-reduction measures for patients. The company will lower prices for certain medicines within the Medicaid program and launch new products with what it describes as "a more balanced pricing approach which recognises the value of innovation across developed nations."
Most significantly, GSK will make the majority of its inhaled respiratory portfolio and other products available through a direct purchasing platform that will offer savings of up to 66% for patients. This platform represents a substantial shift in how patients can access these critical respiratory medications.
Strategic Reserve for Critical Medicines
As part of the President's Strategic Active Pharmaceutical Ingredients Reserve (SAPIR), GSK will contribute to strengthening the U.S. supply chain for critical medicines by securing a reserve of albuterol, also known as salbutamol. This active ingredient is essential for many inhalers used to relieve symptoms of asthma (search) and COPD (search), making its strategic reserve crucial for national health security.
Comprehensive Agreement Coverage
The agreements encompass both GSK and ViiV Healthcare, providing clarity on the future U.S. pricing framework for both companies. As an additional benefit, the agreement excludes GSK and ViiV from s232 tariffs for a three-year period. The detailed terms of the agreements remain confidential.
GSK CEO Emma Walmsley emphasized the company's commitment to respiratory care, stating: "Today's announcement builds on GSK's strong track record of increasing access and improving the affordability of its medicines worldwide, including an ongoing commitment to responsible pricing. GSK has been at the forefront of respiratory innovation for decades – helping millions of Americans prevent and treat chronic respiratory diseases such as asthma (search) and COPD (search). 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."
Investment in U.S. Operations
The pricing agreement aligns with GSK's broader commitment to U.S. operations. In September 2025, the company announced plans to invest more than $30 billion in research and development and manufacturing in the United States over the next five years. This substantial investment includes $2 billion in new commitments for manufacturing facilities, artificial intelligence, and advanced digital technologies announced within the past 12 months, which is expected to create hundreds of highly skilled U.S. jobs.
These investments build upon GSK's existing strong innovation and manufacturing presence, which includes capabilities and approximately 15,000 employees in the United States, focused on developing and manufacturing products domestically for the American market.