S President Donald Trump has reached a new agreement with pharmaceutical giant AstraZeneca, aimed at lowering drug prices across the country while granting the company relief from impending tariffs.
The deal, announced at the White House on Friday, mirrors a similar arrangement struck last month with Pfizer. Under the new terms, AstraZeneca will offer Medicaid the US health program for low-income citizens its medicines at “Most Favored Nation” rates, meaning prices will match the lowest offered in other advanced nations.
According to officials, AstraZeneca has also agreed to join the TrumpRx platform, an online marketplace that will allow Americans to purchase select drugs directly at discounted rates. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, said the company would additionally provide deep discounts on several treatments for lung disease.
In return, the Trump administration has promised to delay new tariffs on AstraZeneca for three years. The British drugmaker had earlier revealed plans to invest about $50 billion in the United States in response to trade tensions. “Most of our products are already made locally, but we’re working to move the rest of our production here,” AstraZeneca CEO Pascal Soriot said while addressing reporters alongside President Trump and other officials.
This development follows the administration’s September 30 announcement of a similar deal with Pfizer, which also involved tariff relief. Both moves are part of Trump’s broader push to rein in soaring prescription drug prices a persistent concern for millions of Americans.
While the White House has yet to specify which AstraZeneca medications will see price reductions, earlier measures involving Pfizer did not include the company’s highest-selling drugs. Despite that, shares of major pharmaceutical firms, including Pfizer, rose after the September announcement, suggesting investors do not view the deals as a significant threat to profits.
Industry analysts believe the new agreements offer pharmaceutical companies more certainty amid shifting trade and pricing policies. “From a company standpoint, they now have greater visibility for the next three years,” said CFRA Research analyst Sel Hardy. However, he noted that it remains too early to gauge the full effect of the administration’s measures on drug prices nationwide.
Much of that impact will depend on upcoming negotiations in November over the pricing of 15 leading drugs under a reform law introduced in 2022.
Zoyols Blog reports that with this latest deal, the Trump administration continues to walk a fine line between consumer relief and maintaining the confidence of major pharmaceutical investors.
