MRK · 10-Q · 2026Q3 · Full report
MFN Drug Pricing Agreement
Merck & Co., Inc. · 2026-11-04 · Importance 46 · Surprise 42 · In source text
In December 2025, Merck entered a three-year agreement with the U.S. government addressing the administration’s most-favored-nation drug-pricing goals. Merck offers Januvia, Janumet and Janumet XR through a U.S. direct-to-patient program and agreed to discounted Medicaid pricing, with plans to expand the patient program to Lipfendra. In June 2026, Merck agreed with CMS to participate in the voluntary GENEROUS Model and expects exemption from the mandatory Medicare Part B GLOBE Model through December 2030. The agreement also covers MFN pricing for certain products launched during its term and sharing a portion of foreign revenue with the federal government.
Key facts
- Merck entered a three-year MFN agreement with the U.S. government in December 2025. source
- In June 2026, Merck signed an agreement with CMS to participate in the voluntary GENEROUS Model, which provides participating state Medicaid agencies pricing for certain medications aligned to prices paid in select countries. source
- Through participation in the GENEROUS Model, Merck expects exemption from the mandatory GLOBE Model through December 2030. source
- Under the MFN agreement, Merck agreed that products launched during its term, with certain exceptions, will be subject to MFN pricing based on prices in specified countries. source
- Merck agreed to repatriate and share with the U.S. government a portion of foreign revenue resulting from successful U.S. trade policy efforts. source
- Merck provides Januvia, Janumet and Janumet XR through a direct-to-patient program at affordable prices for eligible U.S. patients and plans to expand it to Lipfendra. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | committed | — | In June 2026, Merck signed an agreement with CMS to participate in the voluntary GENEROUS Model, which provides participating state… |
| revenue | positive | probable | — | Through participation in the GENEROUS Model, Merck expects exemption from the mandatory GLOBE Model through December 2030. |
| revenue | negative | contingent | — | Under the MFN agreement, Merck agreed that products launched during its term, with certain exceptions, will be subject to MFN pricing… |
| cash | negative | contingent | — | Merck agreed to repatriate and share with the U.S. government a portion of foreign revenue resulting from successful U.S. trade policy… |
| revenue | mixed | probable | — | Merck provides Januvia, Janumet and Janumet XR through a direct-to-patient program at affordable prices for eligible U.S. patients and… |