Teva Pharmaceutical Industries Ltd. (NYSE and TASE: TEVA) announced it is in active discussions with the Trump administration to reach an agreement aimed at lowering the cost of select medicines for American patients covered by Medicaid.

According to a press release, the proposed deal would align U.S. Medicaid pricing for certain medicines with pricing in other developed markets through what Teva calls the GENEROUS (GENErating cost Reductions fOr U.S. Medicaid) framework. The agreement would also include a Most-Favored-Nation pricing commitment for applicable future innovative product launches.

Teva said it has also offered a dedicated reserve of certain active pharmaceutical ingredients (API) to support public health needs, along with continued investment in U.S. pharmaceutical manufacturing capabilities. The specific conditions of the negotiation remain confidential, according to the company.

"Teva built its business around delivering affordable medicines to Americans, and we share the Administration's commitment to improve access to more affordable medicines while investing in scientific innovation and domestic manufacturing capabilities in the U.S.," said Chris Fox, President of Teva USA.

No final agreement has been reached. Teva described the announcement as a "shared commitment" and said discussions are ongoing.