U.S. President Donald Trump’s administration and AstraZeneca (NASDAQ:AZN) announced Friday that they have finalized a deal for the U.K.-based drugmaker to lower the cost of its medicines in the United States.
This accord mirrors a similar pricing arrangement reached late last month with Pfizer (NYSE:PFE).
As part of the deal, AstraZeneca will provide its drugs to Medicaid patients at the lowest price available in other advanced economies — a model Trump refers to as “most-favored nation” pricing. The pricing will be implemented through a new government platform called TrumpRx.gov. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, said the company’s primary care medications will be listed on the site from early next year, with future prescription drugs also to be offered at the same favorable rates.
AstraZeneca CEO Pascal Soriot stated that the agreement includes an exemption from pharmaceutical tariffs. Pfizer secured similar terms, gaining a three-year exemption from tariffs in exchange for continued investment in U.S.-based production.
In July, AstraZeneca announced a $50 billion investment plan in the U.S. through 2030. Further details of that strategy were presented Friday, ahead of the pricing deal’s confirmation.
The agreement was unveiled during a White House event attended by Trump, senior officials, and Soriot, and was first reported by MSNBC.
Trump has consistently pressed drugmakers to bring down prices and increase domestic manufacturing, amid growing public frustration over the high cost of medications in the U.S. compared to other developed countries. His administration has recently threatened tariffs of up to 250% on the sector, spurring many pharmaceutical companies to commit major investments stateside.
The President also indicated plans to negotiate similar deals with other major players in the pharmaceutical industry in the coming weeks. “Most of them are here because of tariffs,” he said.
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