AstraZeneca Announces Deal with US Government to Lower Medicine Costs

AstraZeneca (LON: AZN) has announced an agreement with the US government, committing to lower prescription medicine costs for American patients.

The company said the move fulfills all four requests outlined by the Trump administration, while aiming to preserve the nation's role in biopharmaceutical innovation.

The agreement includes a significant $50 billion investment by AstraZeneca in US-based manufacturing and research and development.

The agreement is said to address the long-standing issue of high drug prices in the US.

AstraZeneca will equalize prices in America with those in other wealthy countries, a move that could set a precedent for the pharmaceutical industry.

The company will provide direct-to-consumer (DTC) sales to eligible patients with chronic disease prescriptions at discounts of up to 80% off list prices through the TrumpRx.gov platform.

AstraZeneca has also secured a three-year delay on Section 232 tariffs from the US Department of Commerce. This delay allows the company to fully onshore its medicines manufacturing, ensuring all its drugs sold in America are made in America.

The $50 billion investment over the next five years will support this onshoring effort and is projected to contribute to a total revenue of $80 billion by 2030, with 50% expected to be generated in the US.

Pascal Soriot, Chief Executive Officer, AstraZeneca, said: “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.

“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.”