AstraZeneca has agreed to reduce its drug prices for Medicaid patients after reaching a new deal with the Trump administration. The agreement, announced Friday, marks a significant policy win as the administration pushes to make prescription drugs more affordable in the United States. President Donald Trump and AstraZeneca CEO Pascal Soriot revealed the details in the Oval Office, highlighting the company’s pledge to match the lowest international rates on many medications.
Trump Announces Major Drug Pricing Agreement
President Trump said the AstraZeneca drug prices deal would provide Medicaid with “most-favored-nation” pricing, ensuring the U.S. pays no more than other developed countries.
“For many years, Americans have paid the highest prices in the world for prescription drugs,” Trump said. “That changes now.”
The new agreement makes AstraZeneca the second pharmaceutical giant—after Pfizer—to accept lower prices under the administration’s cost-cutting initiative. The deal also averted steep tariffs that Trump had threatened if companies refused to comply.
AstraZeneca’s Role and Global Commitments
AstraZeneca, based in Cambridge, United Kingdom, manufactures several major cancer treatments, including Tagrisso for lung cancer, Lynparza for ovarian cancer, and Calquence for leukemia. Collectively, these drugs generated more than $7.5 billion in U.S. sales last year.
Under the deal, the company will guarantee reduced AstraZeneca drug prices on both current and newly launched medications. CEO Pascal Soriot praised the negotiations while admitting they were tough.
“President Trump and his team really kept me up at night,” he said with a smile.
Administration Policy and Industry Impact
Friday’s announcement builds on an executive order Trump signed in May that required drugmakers to voluntarily lower costs or face new payment limits. Trump hinted that more agreements with pharmaceutical firms are forthcoming.
The administration also launched a new website, TrumpRX.gov, to let Americans buy medications directly from participating manufacturers. Both Pfizer and AstraZeneca will offer drugs through the platform, which is set to debut in January 2026.
The website, designed by the newly created National Design Studio led by Airbnb co-founder Joe Gebbia, aims to provide transparency and easier access to lower-priced prescription drugs.
Economic Expansion and Job Creation
Alongside the pricing announcement, AstraZeneca unveiled plans to build a $4.5 billion manufacturing plant near Charlottesville, Virginia. Virginia Governor Glenn Youngkin joined the Oval Office event, celebrating the investment as a milestone for the state’s biotech sector.
Trump said the project could create at least 3,600 new U.S. jobs “just to begin with.” The plant will be part of AstraZeneca’s broader $50 billion investment in America by 2030. The company expects to reach $80 billion in global revenue by then, with half coming from U.S. operations.
Reactions from Lawmakers and Advocates
Health advocates have cautiously welcomed the AstraZeneca deal, seeing it as progress in addressing high drug prices. Still, some experts warn that voluntary agreements may not go far enough without additional policy safeguards.
Democrats have also noted that some drug price reductions stem from Medicare negotiations established under President Biden, though Trump dismissed those claims.
“They don’t get credit for this,” Trump said. “This is about fair prices for the American people.”
AstraZeneca’s Global Adjustments
The announcement comes months after AstraZeneca canceled plans to expand a vaccine plant in the U.K., citing decreased government support. Analysts say the new U.S. investment and pricing deal show the company’s shift toward the American market—where growth and government cooperation now appear stronger.
The focus on AstraZeneca drug prices aligns with Trump’s broader message of encouraging domestic production while ensuring affordability for U.S. patients.
Conclusion
The AstraZeneca agreement marks a milestone in the Trump administration’s campaign to lower drug costs. By tying prices to international benchmarks and expanding manufacturing in the U.S., the deal combines economic development with consumer savings. If successful, it could set a precedent for future pharmaceutical negotiations—and make affordable medicine a lasting part of America’s healthcare landscape.
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