Drug-Price Deal: AstraZeneca and U.S. Steps to Lower Costs

On October 10, 2025, President Donald Trump announced a binding agreement with AstraZeneca that will change how some medicines are priced for U.S. patients. The deal, which uses a most-favoured-nation pricing approach, was negotiated after the administration warned it could impose steep tariffs on imported branded drugs. By pressing companies with that leverage, the White House secured commitments that AstraZeneca had previously resisted.

Under the agreement, AstraZeneca will offer many of its prescription medicines to the Medicaid program at prices linked to the lowest rates the company charges in other developed countries. The company will list participating products on the TrumpRx website and said it will expand U.S. production, increasing its Virginia plant investment to $4.5 billion and pledging a broader $50 billion in U.S. investment by 2030; the project is expected to create about 3,600 jobs. In return, AstraZeneca was offered a three-year exemption from new import tariffs.

Although supporters say the arrangement will tighten price gaps between the United States and other nations, critics have cautioned that the effect on out-of-pocket costs for people with private insurance or Medicare is likely to be limited, because the commitments primarily affect Medicaid pricing. Pfizer had agreed to similar terms earlier, and more companies remain in talks.

Nevertheless, the deals mark a significant push to onshore manufacturing and reshape how multinational drugmakers sell medicines in America. The administration plans the TrumpRx portal to launch in January 2026, offering direct sales of discounted medicines to consumers; it has invited 17 major drugmakers to make similar commitments, and several companies are still negotiating their responses.