US President Donald Trump participates in a bilateral meeting with Finnish President Alexander Stubb (not pictured) in the Oval Office of the White House in Washington, DC, United States, on October 9, 2025.
Nathan Howard | Reuters
The Trump administration and AstraZeneca announced Friday that they have reached a deal for the U.K.-based pharmaceutical giant to reduce drug prices in the U.S.
The agreement with AstraZeneca follows a similar pact with the American pharmaceutical company Pfizerwhich was announced at the end of last month.
AstraZeneca will agree to sell drugs directly to Medicaid patients at the lowest price offered in other developed countries, or what Trump calls “most favored nation” prices, on an upcoming government website called TrumpRx.gov. AstraZeneca's primary care drugs will be available on site starting early next year, and the company will offer new prescription drugs at the nation's most favored price, Centers for Medicare and Medicaid Services Administrator Mehmet Oz said.
AstraZeneca CEO Pascal Soriot also said the company will be exempt from pharmaceutical tariffs as part of the deal. Pfizer agreed to similar terms with the Trump administration and received a three-year waiver from pharmaceutical tariffs on the condition that it continue to invest in American manufacturing.
AstraZeneca said in July it would invest $50 billion in the United States by 2030. The company announced more details about those plans on Friday ahead of the pricing deal announcement.
President Donald Trump, administration officials and Soriot announced the deal during an event at the White House on Friday.
MSNBC previously reported on the deal.
Trump has pressured drug makers to lower prices and increase manufacturing in the United States, as high drug costs compared to other developed countries irritate voters across the political spectrum. As his administration threatened pharmaceutical companies with tariffs of up to 250% in recent months, many drugmakers announced major investments in the United States.
Trump has said he intends to reach pricing agreements with other major drugmakers in the coming weeks. Trump suggested that drugmakers and other companies have invested as much as they did because of the threat of higher tariff costs.
“Most of them are here because of the tariffs,” he said.
