WASHINGTON — President Donald Trump on Thursday announced a sweeping new deal with U.K. pharmaceutical giant AstraZeneca, aiming to slash U.S. drug prices to match the lowest rates globally, in a move he calls a “historic victory” for American patients and taxpayers.
The agreement commits AstraZeneca to offer all its prescription drugs to U.S. Medicaid recipients at “most favored nation” (MFN) pricing — the lowest available price globally. Under the deal, some medications will see cost reductions exceeding 600%, including treatments for asthma, diabetes, and chronic obstructive pulmonary disease (COPD).
“This is a tremendous victory for American patients,” Trump declared from the Oval Office. “We’re talking about prices dropping not just 1%, 2%, or 5%, but 400%, 600%, even over 1,000% in some cases.”
TrumpRx.gov Goes Live
The initiative includes the launch of a new platform, TrumpRx.gov, which will provide transparent, direct-to-consumer access to AstraZeneca’s discounted medications. While the site won’t sell drugs directly, it will guide users to the best prices available — removing middlemen and opaque pricing structures that have long plagued the U.S. pharmaceutical system.
All new drugs introduced by AstraZeneca in the U.S. will also be priced using MFN rates, ensuring sustained affordability.
$50 Billion Investment in U.S. Manufacturing
AstraZeneca also pledged a $50 billion investment over the next five years to expand pharmaceutical manufacturing and R&D within the United States. The company broke ground this week on a $4.5 billion facility in Charlottesville, Virginia, expected to generate 3,600 new jobs.
“We’re reshoring critical supply chains and securing America’s position in biopharma innovation,” said AstraZeneca CEO Pascal Soriot. “For too long, Americans have unfairly shouldered the cost of global R&D. That changes today”.
Trump Blasts Democrats, Claims Credit
Trump credited his administration’s tariffs and pressure tactics for compelling pharmaceutical companies to negotiate. “The Democrats didn’t work on this — they obstructed it,” he said. “They’ve promised lower drug prices for years. We’re the ones who actually delivered.”
CMS Administrator Dr. Mehmet Oz emphasized that MFN pricing will now cover 95% of all branded and generic drugs sold in the U.S. before the end of Trump’s current term.
Critics of the IRA Drug Price Cuts
Secretary Robert F. Kennedy Jr., now serving in Trump’s cabinet, said previous Democratic-led drug price efforts under the Inflation Reduction Act (IRA) were ineffective. “We ended up paying more for 8 of the 10 drugs negotiated under IRA,” he said. “This is a complete reset. We now have real leverage”.
The deal follows a similar pledge from Pfizer last week. Trump officials say they are in negotiations with multiple other global pharmaceutical companies to expand MFN pricing further.
Tariffs Played a Key Role
Trump confirmed that his pharmaceutical tariff policy was pivotal in bringing AstraZeneca to the table. Companies building within the U.S. avoid those tariffs, providing a strong incentive to reshore manufacturing.
“Pascal told me directly that tariffs made a difference,” Trump said. “And he loves Virginia.”
Economic and Security Implications
Virginia Gov. Glenn Youngkin called the deal a game-changer. “It’s not just about cheaper drugs,” he said. “This is an economic and national security moment. Americans will no longer depend on overseas factories for life-saving medications.”
Trump noted that total investment commitments under his current administration now top $18 trillion, dwarfing the under $1 trillion recorded during the previous administration over four years.
Looking Ahead
Trump concluded the press event by signaling broader implications. “This isn’t just about drug prices. It’s about fairness. It’s about leadership. And it’s about making America the center of medical innovation again.”
The administration plans to roll out additional pharmaceutical partnerships in the coming months as part of its America First Healthcare Initiative.
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Ten years of experience reporting. From car chases and courtroom verdicts to House fires, Holsford thrives during breaking news and finds it a privilege to help drive the conversation in Rockland County and the Greater New York Area. Born in San Bernardino, Thomas is a New York boy at heart. He received his bachelor’s degree in broadcast journalism, specializing in political science and sociology, from the University of Illinois
