Trump Strikes Second Major Deal to Lower U.S. Drug Prices
- Oct 10
- 3 min read
The Trump administration is accelerating its efforts to curb the soaring cost of prescription medicines, announcing a major drug pricing agreement with Britain-based AstraZeneca. The announcement was expected to take place on Friday at 5 p.m. ET (2100 GMT) in the Oval Office. AstraZeneca CEO Pascal Soriot was reported to be present at the White House for the event.
This deal establishes a "most-favored-nation" drug pricing model, mirroring the administration’s strategy of requiring pharmaceutical companies to align U.S. prices with those offered in other developed countries. The primary goal of the agreement is to make prescription medicines more affordable, particularly for low-income Americans.
The core components of the arrangement include price cuts for Medicaid, the government's health plan for low-income individuals. Additionally, discounted prices will be made available through the planned TrumpRx website, slated for launch next year.
The agreement with AstraZeneca follows a similar high-profile deal announced last week with U.S. drugmaker Pfizer. Pfizer became the first major pharmaceutical company to strike a deal after President Trump sent binding commitment letters to 17 leading drugmakers in July, demanding price cuts. Pfizer agreed to lower Medicaid prescription drug prices to match its charges in other developed nations. In exchange, Pfizer received a three-year exemption from pharmaceutical sector tariffs, contingent on continued investment in U.S. manufacturing.
The pressure on the industry has been immense, driven by the fact that U.S. patients often pay nearly three times more for prescription medicines than patients in other developed nations. Trump has repeatedly threatened pharmaceutical companies with stiff tariffs if they do not lower prices, with threats escalating to 100% tariffs last month after negotiations broke down earlier this year. Recently, the administration had even threatened tariffs as high as 250% in recent months.
Following the Pfizer announcement, sources indicate that other major pharmaceutical firms who received similar pricing letters from the President have been "scrambling" to show progress and strike a deal with the White House. As one lobbyist noted, the industry feels they "have to now," expressing "anger" with Pfizer for effectively increasing the pressure on their competitors to agree to terms.
AstraZeneca appears keen to maintain a favorable relationship with Washington. In July, the company announced a significant commitment to the U.S., pledging to invest $50 billion in U.S. manufacturing and research and development by 2030. This expansion includes building its biggest worldwide site in Virginia and expanding facilities in five other U.S. states.
Furthermore, in September, the Anglo-Swedish firm, which CEO Soriot has described as a "very American company," announced a separate initiative to sell its diabetes and asthma drugs direct to cash-paying U.S. patients at discounts of up to 70% off list prices. These actions reflect the company’s identity shift toward its largest market.
While the specifics of the AstraZeneca agreement were pending announcement, it remains unclear whether the deal includes the same tariff exemption carveout that Pfizer received. However, the message from the White House remains consistent: Trump has stated he aims to strike pricing deals with other major drugmakers in the weeks ahead, reinforcing his stance, "If we don't make a deal, we're going to tariff them,".
🔖 Sources
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