AstraZeneca Strikes Deal with White House to Lower US Drug Prices, Boost Domestic Investment

Historic Agreement Reached on Drug Pricing

Pharmaceutical giant AstraZeneca announced a landmark agreement with the White House on Friday, October 10, 2025, aimed at significantly reducing the cost of certain prescription medicines for American patients. The deal, unveiled at an Oval Office event with President Donald J. Trump and AstraZeneca CEO Pascal Soriot, marks the second such agreement with a major pharmaceutical company, following a similar pact with Pfizer.

Under the terms of the agreement, AstraZeneca will implement a 'most-favored-nation' pricing model for its drugs offered to Medicaid patients. This means the company will charge no more than the lowest rates available in other high-income countries. This pricing standard will also apply to newly launched prescription drugs.

Discounts and Direct-to-Consumer Platform

A key component of the deal involves offering substantial discounts directly to eligible US patients. AstraZeneca will provide discounts of up to 80% off list prices for patients with prescriptions for chronic diseases.

The company will also participate in the forthcoming TrumpRx.gov direct purchasing platform, which is expected to launch early next year. This platform will allow patients to purchase medicines directly from AstraZeneca at a reduced cash price. Centers for Medicare and Medicaid Services Administrator Mehmet Oz indicated that the website would direct consumers to lower prices rather than selling drugs directly.

Specific medications, such as asthma and COPD inhalers and certain diabetes medicines, are expected to see significant price reductions. For instance, BEVESPI AEROSPHERE, an inhaler for chronic obstructive pulmonary disease (COPD), could be available at a discount equivalent to 654% of its deal price for direct purchasers.

Investment in US Manufacturing and Tariff Relief

In exchange for these pricing concessions, AstraZeneca will receive a three-year delay on Section 232 tariffs from the US Department of Commerce. This tariff relief is intended to facilitate the company's efforts to onshore medicines manufacturing, ensuring that all AstraZeneca medicines sold in America are made in America.

As part of its commitment to the US economy, AstraZeneca has pledged to invest $50 billion in US medicines manufacturing and research and development (R&D) over the next five years, aiming to achieve $80 billion in total revenue by 2030, with 50% generated in the US. This includes a $4.5 billion investment in a new manufacturing facility in Virginia, projected to create 3,600 jobs.

Broader Context of Drug Pricing Initiatives

This agreement is part of the Trump administration's broader strategy to address the high cost of prescription drugs in the United States, where patients often pay significantly more than in other developed nations. President Trump had previously sent letters to 17 major pharmaceutical companies in July, urging them to lower prices.

AstraZeneca CEO Pascal Soriot stated that the agreement would allow millions of Americans living with cancer and chronic diseases to access life-changing medicines at lower prices.