AstraZeneca US deal: AstraZeneca has become the second major drugmaker to agree to lower Medicaid prescription costs under a Trump administration initiative that paired price negotiations with the threat of steep tariffs. Announcing the pact at the White House, President Donald Trump appeared alongside CEO Pascal Soriot, who described the talks as tough and persistent.
Under the agreement, AstraZeneca will extend “most-favoured nation” pricing to Medicaid, matching the lowest prices the company offers in other developed countries, and guarantee that benchmark on newly launched medicines. Trump said the move aims to reverse years of comparatively higher US drug prices and could drive some therapies toward “the lowest price anywhere in the world.”
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The deal follows a similar arrangement struck by Pfizer last month and builds on a May executive order that set a deadline for manufacturers to cut prices or face new payment limits voluntarily. Supporters argue that the approach could deliver near-term relief; critics caution that it relies too heavily on voluntary compliance without adequate broader policy safeguards.
AstraZeneca, whose US portfolio includes cancer drugs Tagrisso, Lynparza and Calquence, collectively generating more than $7.5 billion in U.S. sales last year, also detailed a $4.5 billion manufacturing plant near Charlottesville, Virginia. The project anchors a planned $50 billion US investment by 2030; the company is targeting $80 billion in global revenue by then, roughly half from the United States. Trump said the new facility could create about 3,600 domestic jobs “to begin with.”
Officials said AstraZeneca and Pfizer will sell medications directly to consumers through a forthcoming federal portal, TrumpRX.gov, slated to launch in January 2026.
