President Donald Trump announced Friday that his administration has struck a deal with pharmaceutical giant AstraZeneca to lower drug prices for Medicaid patients, following a similar agreement made last week with Pfizer. The deal is part of Trump’s aggressive strategy to force drugmakers to reduce U.S. prescription costs or face stiff tariffs.
Speaking from the Oval Office alongside AstraZeneca CEO Pascal Soriot, Trump outlined the core of the arrangement: in exchange for a three-year exemption from certain tariffs, AstraZeneca will sell a selection of its medications to the U.S. Medicaid program at discounted rates and offer up to 80% off list prices on some drugs through the upcoming TrumpRx website.
“These deals are about putting the American patient first,” Trump said. “No more gouging, no more games. If you want access to our markets, you play by our rules — and that means fair prices.”
Soriot praised the agreement, saying it allows AstraZeneca to localize more of its operations within the U.S. and better serve American patients. He also confirmed the company’s $50 billion investment in American R&D and manufacturing by 2030, including its new flagship facility in Virginia and expansions in five other states.
The Trump administration’s pressure campaign on the pharmaceutical industry began in earnest this summer, when the president sent letters to 17 of the world’s leading drugmakers demanding price cuts. Trump then threatened 100% tariffs on certain pharmaceutical imports after talks stalled.
AstraZeneca becomes the second major firm to comply with Trump’s demands, after Pfizer cut a similar deal last week.
While some health policy analysts say the discounts for Medicaid—already the recipient of some of the lowest drug prices—may yield limited savings, the symbolic and strategic value of these deals appears far greater. Trump’s team sees these agreements as the model for reshaping the entire pricing structure of the U.S. pharmaceutical market, using trade leverage and direct-to-consumer sales platforms to bypass entrenched lobbying efforts in Congress.
“This is about breaking the cartel,” a senior administration official said. “The American people have been getting ripped off by Big Pharma for decades. That ends now.”
Critics argue the deals may have minimal impact on broader cost concerns, particularly for those with private insurance. But administration officials maintain that forcing companies to lower list prices, expand direct cash discounts, and move production to the U.S. will have ripple effects across the system.
AstraZeneca has also pledged to offer its diabetes and asthma medications directly to U.S. patients at a 70% discount, part of what Soriot called “a complete transformation in how we serve our largest market.”
The company is also taking steps to rebrand itself for the American public. Soriot described AstraZeneca as a “very American company,” and confirmed it will list shares on U.S. exchanges in addition to those in the UK and Europe.
With the Pfizer and AstraZeneca deals complete, attention now turns to the remaining drugmakers on Trump’s list. The White House has made clear that further tariff threats remain on the table unless other companies follow suit.
The post Trump Announces Drug Pricing Deal With AstraZeneca, Expands Pressure Campaign on Big Pharma appeared first on Real News Now.
About Author
