Deals between pharmaceutical companies and the U.S. government to reduce drug prices are likely to drive higher costs for new medicines in Switzerland over time, according to Thomas Schinecker, CEO of Swiss drugmaker Roche Holding AG (OTC:RHHBY).

Speaking to Swiss newspaper Tages-Anzeiger, Schinecker said recent agreements aimed at lowering prices for medicines sold in the U.S. Medicaid program reflect Washington’s broader push to rebalance how global markets pay for pharmaceutical innovation.

On Friday, Genentech, a Roche company, announced an agreement with the U.S. government that lowers costs for state Medicaid programs. 

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Genentech will also expand its recently-launched direct-to-patient program for its essential flu medicines and make the program available via TrumpRx.gov.

Other Drugmakers Strike Similar U.S. Deals

Other companies that announced similar pricing deals with the U.S. government, include Bristol Myers Squibb Co.