The administration of U.S. President Donald Trump and AstraZeneca (LSE:AZN) announced Friday that they have reached an agreement for the U.K.-based pharmaceutical company to lower drug prices in the U.S.
This development follows a similar arrangement between the Trump administration and Pfizer (NYSE:PFE), which was unveiled at the end of last month.
Under the deal, AstraZeneca will sell its drugs to Medicaid patients at the lowest price offered in other developed countries — what Trump calls “most-favored nation” pricing — through a new government platform, TrumpRx.gov. According to Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, AstraZeneca’s primary care medications will be accessible on the site from early next year, and future prescription drugs will also be priced under the same model.
AstraZeneca CEO Pascal Soriot confirmed that the company will be exempt from pharmaceutical sector tariffs as part of the agreement. Pfizer accepted similar conditions in its deal with the administration, receiving a three-year exemption from tariffs in return for continued investment in U.S. manufacturing.
In July, AstraZeneca announced plans to invest $50 billion in the U.S. by 2030. Additional details about this investment were shared on Friday, ahead of the official pricing announcement.
The agreement was formally unveiled during a White House event attended by Trump, senior administration officials, and Soriot. MSNBC was the first to report on the deal.
Trump has repeatedly pressed pharmaceutical companies to reduce prices and expand domestic production amid growing frustration among voters over high U.S. drug costs compared to other advanced economies. In recent months, his administration has threatened tariffs of up to 250% on the sector, prompting several major drugmakers to ramp up investment in the U.S.
Trump has said he intends to secure similar agreements with additional pharmaceutical companies in the coming weeks. “Most of them are here because of tariffs,” he said.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. Some portions of this content may have been generated or assisted by artificial intelligence (AI) tools and been reviewed for accuracy and quality by our editorial team.
Leave a Reply