AstraZeneca has announced an agreement with the Trump administration to dramatically reduce prescription medicine costs for American patients while preserving the country’s position as a global biopharmaceutical leader.
The deal should draw a line under uncertainties about whether AstraZeneca will be hit by US tariffs, which could disrupt sales in its largest market.
AstraZeneca shares were 0.4% higher at the time of writing on Monday. Shares are 15% higher in October.
The British-Swedish pharmaceutical company’s chief executive, Pascal Soriot, joined President Donald Trump at the White House to confirm the firm had voluntarily met all four requests outlined in the President’s letter from 31st July.
The deal centres on equalising medicine prices for American patients with those available in other wealthy nations.
Under the agreement, AstraZeneca will offer direct-to-consumer sales to eligible patients with chronic disease prescriptions at discounts of up to 80% off list prices. Patients will be able to purchase medicines at reduced cash prices through the TrumpRx.gov direct purchasing platform.
The deal follows AstraZeneca’s recently announced $50 billion investment in US medicines manufacturing and research and development over the next five years, made under pressure from the US President.
Trump had previously threatened tariffs of up to 100% on imported drugs.
AstraZeneca has framed the US investment in the context of its target to reach $80 billion in total revenue by 2030. Half of this revenue is expected to come from the American market alone.
“Every year AstraZeneca treats millions of Americans living with cancer and chronic diseases and, as a result of today’s agreement, many patients will access life-changing medicines at lower prices,” said Pascal Soriot, Chief Executive Officer, AstraZeneca.
“This new approach also helps safeguard America’s pioneering role as a global powerhouse in innovation and developing the next generation of medicines. It is now essential other wealthy countries step up their contribution to fund innovation.”