AstraZeneca has reached a deal with Donald Trump’s administration to lower prices on some of its medicines for the US Medicaid program in exchange for tariff relief.
The British drugmaker follows Pfizer in agreeing to a “most-favored-nation” pricing model, meaning it will match the lowest drug prices offered in other developed countries.
“For years, Americans have paid the highest prices in the world,” Trump said from the Oval Office. “This deal could bring prices down to the lowest anywhere.”
AstraZeneca CEO Pascal Soriot, present at the announcement, said the negotiations were intense and that Trump’s team “really kept me up at night.”
The agreement, however, applies mainly to Medicaid — the government program for low-income Americans — and experts say the impact may be limited. “Medicaid already gets the lowest prices,” said economist Craig Garthwaite. “The discounts won’t be huge.”
Trump has also promised discounted prices through a new “TrumpRx” website and hinted at more deals with major drugmakers. He recently threatened 100% tariffs on pharmaceutical imports unless companies cut costs or move production to the US.
Health analysts remain skeptical. “It’s good for the companies, but has uncertain benefits for Americans struggling with drug affordability,” said Rena Conti of Boston University.
