Regeneron Agrees to Lower Drug Prices and Offer Free Gene Therapy in U.S. Deal

Biotech company Regeneron has agreed to lower U.S. drug prices for some Americans as part of a deal with the U.S. government. The agreement also involves providing a newly approved gene therapy for hearing loss at no cost to eligible patients in the U.S. This marks the latest in a series of similar concessions by major drugmakers.

The deal is tied to an initiative to match U.S. drug prices with the lowest rates in other developed nations. It exempts the company from tariffs for three years, including potential levies up to 100% on certain pharmaceutical products. The administration has secured 17 such agreements so far and is negotiating additional ones with other biotech and pharmaceutical firms.

The Food and Drug Administration approved Regeneron's gene therapy, Otarmeni, on April 23, 2026. The treatment targets an ultra-rare genetic condition caused by a mutation that prevents the production of a protein essential for hearing. It restored hearing in a small number of deaf children during trials.

The therapy received expedited approval under the FDA's National Priority Voucher program. Patients have historically relied on cochlear implants for this condition. Analysts estimated the gene therapy could generate peak sales of $130 million.

The agreements aim to reduce costs for American patients, including cuts to Medicaid rates. Regeneron will match future U.S. drug prices with global levels under the deal.

“The biotech company will also offer the first hearing-loss gene therapy for free to eligible U.S. patients following regulatory approval of the product." — CNBC, April 23, 2026. The deal follows FDA approval of Otarmeni earlier on the same day. It represents a breakthrough for a subset of patients with the genetic mutation. The company is the latest to participate in these pricing arrangements.”

These agreements are part of efforts to address drug affordability in the U.S. By tying prices to international benchmarks, the initiative seeks to lower costs for patients. The tariff exemptions provide incentives for companies to participate. Regeneron's involvement adds to the 17 existing deals.

Negotiations continue with other firms in the sector. The focus remains on both new and existing medicines.