Trump unveils drug pricing deal with AstraZeneca
President Donald Trump announced a deal with AstraZeneca on Friday, offering discounts on medicines for Medicaid in exchange for tariff relief. This follows a similar agreement with Pfizer last week as part of efforts to lower U.S. prescription drug prices. The White House aims to use these pacts as a model for negotiations with other drugmakers.
The agreement mirrors last week's pact with Pfizer, establishing a framework for the administration's goal of reducing prescription medicine costs in the United States. In July, Trump sent letters to 17 leading drugmakers urging them to slash prices, with Pfizer and AstraZeneca becoming the first to comply.
At an Oval Office event, AstraZeneca CEO Pascal Soriot stated the company will offer some drugs at up to 80% off list prices through the planned TrumpRx website next year. He added that the firm will receive a three-year tariff exemption "to localize the remainder of our products."
U.S. patients pay nearly three times more for medicines than in other developed nations, prompting Trump's pressure campaign. Last month, he threatened 100% tariffs after earlier negotiations stalled, according to lobbyists and executives. The Medicaid program, covering over 70 million low-income individuals, already secures the lowest U.S. drug prices, with gross spending around $80 billion in 2021—far below Medicare's $216 billion.
Experts question the deal's impact. Craig Garthwaite, a professor at Northwestern University's Kellogg School of Management, noted: "If you look at AstraZeneca’s portfolio, I don’t think there are a bunch of drugs that exist where that’s going to involve them giving a very big discount to Medicaid."
Rena Conti, an associate professor at Boston University, added: "It’s good for the companies, and has very uncertain if any benefit for Americans struggling with the affordability of prescription drugs."
AstraZeneca has aligned closely with U.S. interests, announcing a $50 billion investment in manufacturing and R&D by 2030, including its largest global site in Virginia and expansions in five other states. In September, it began selling diabetes and asthma drugs directly to cash-paying patients at up to 70% off. Soriot described the Anglo-Swedish company as a "very American company" and plans to list shares in the U.S. alongside the UK and Europe.