Regeneron Pharmaceuticals Inc. (NASDAQ: REGN) announced an agreement with the U.S. government to reduce drug prices and provide its recently approved gene therapy Otarmeni for free in the United States.

Under the agreement announced at the White House, Regeneron will lower Medicaid prices based on those in other developed countries and align U.S. prices of future medicines with prices set in that defined group of countries. The company will also make its cardiovascular medicine Praluent available for direct patient purchase through TrumpRx.gov at most-favored nation pricing.

Regeneron will provide Otarmeni (lunsotogene parvec-cwha), a gene therapy recently approved by the FDA for treating severe to profound hearing loss caused by variants of the otoferlin gene, at no cost to U.S. patients. The therapy addresses an ultra-rare form of genetic hearing loss.

"For too long, American patients and taxpayers have shouldered a disproportionate share of the cost of biotechnology innovation — effectively subsidizing lower drug prices for other high-income nations," said Leonard Schleifer, Regeneron's CEO and co-founder.

As part of the agreement, Regeneron will not be subject to future pricing mandates and will receive tariff relief for three years through an arrangement with the U.S. Department of Commerce. The company has committed to certain activities and investments supporting research and development and manufacturing in the United States.

Regeneron has committed over $9 billion in U.S.-based manufacturing and R&D infrastructure investments in coming years. Additional terms of the agreement remain confidential.

The agreement was announced during a meeting between Regeneron leaders and President Donald Trump and members of his administration, addressing four requests outlined in the President's July 31st letter.