The deals set a framework the White House will use to try to reach its goal of lowering U.S. prescription medicine prices.
Pfizer and Astra are the first two companies to reach a deal with the administration.
ASTRAZENECA ALREADY PLEDGED MANUFACTURING MOVE Soriot has worked to keep his company close to Washington while pursuing its growth strategy.
AstraZeneca in July announced it will invest $50 billion in U.S. manufacturing and research and development by 2030.
AstraZeneca will list its shares in the United States as well as its current markets in the UK and Europe.
An overview.
businesses.
Deal offers a structure for pharmaceutical companies.
AstraZeneca has been granted a three-year tariff exemption.
adheres to a comparable Pfizer agreement.
WASHINGTON, October 10 (Reuters) – President Donald Trump announced an agreement with AstraZeneca (AZN), a pharmaceutical company based in the United Kingdom. L), opens a new tab on Friday wherein the company will offer tariff relief in exchange for a discount on some medications sold to the government’s Medicaid health plan. This is comparable to a drug pricing agreement that was reached with Pfizer (PFE) last week. N) launches a new tab.
The agreements establish a foundation for the White House’s efforts to try to lower U.S. S. . cost of prescription drugs. In July, the president wrote to 17 major pharmaceutical companies urging them to lower their prices. The first two corporations to sign an agreement with the administration are Pfizer and Astra.
At an event in the Oval Office, CEO Pascal Soriot announced that AstraZeneca will give up to 80 percent off the list price of some of its medications through the TrumpRx website starting next year.
“To localize the remainder of our products,” he said, the company will be granted a three-year tariff exemption. “..”.
The highest prices for prescription drugs.
U. S. Prescription drug costs are currently the highest for patients, frequently almost three times higher than in other developed countries. Trump has been putting pressure on pharmaceutical companies to reduce their prices to what patients pay elsewhere or face high tariffs.
Trump’s threat of 100 percent tariffs last month increased pressure on the pharmaceutical industry to agree to lower prices and move production to the United States. S. following the Pfizer deal, executives and lobbyists told Reuters that talks had collapsed earlier this year.
Medicaid is a federal and state program for low-income individuals that covers over 70 million people. Medicare, which covers those 65 and older or those with disabilities and was not mentioned in Friday’s announcement, has far higher drug spending than that program.
Medicaid spent about $80 billion on drugs in 2021, compared to $216 billion for Medicare.
The Medicaid program currently has the lowest drug costs in the United States. S. According to Craig Garthwaite, a professor at Northwestern University’s Kellogg School of Management, the extra savings could be minimal.
Garthwaite stated, “If you look at AstraZeneca’s portfolio, I don’t think there are a bunch of drugs that exist where that’s going to involve them giving a very big discount to Medicaid.”.
Although AstraZeneca may avoid tariffs thanks to its Pfizer-like deal, the U.S. S. . “increasing out-of-pocket drug costs and health insurance premiums,” Boston University associate professor Rena Conti said.
“It benefits the companies, but it has little to no benefit for Americans who are having trouble affording prescription medications,” Conti stated.
The manufacturing move was already completed by Astazeneca.
Soriot has pursued his company’s growth strategy while trying to keep it near Washington.
In July, AstraZeneca declared that it would invest $50 billion in the U.S. S. . research and development as well as manufacturing by 2030. It plans to expand its facilities in five other U.S. states and construct its largest site globally in Virginia. S. states.
In September, the business declared it would sell its asthma and diabetes medications directly to U.S. taxpayers. S. another action in reaction to Trump’s pressure campaign: offering patients a discount of up to 70% off list prices.
This season, Soriot has emphasized the company’s U. S. credentials. Using the phrase “very American company,” he highlighted the Anglo-Swedish company’s identity shift toward its largest market. AstraZeneca will list its shares in the US in addition to its existing markets in Europe and the UK.
Michael Erman in New Jersey and Steve Holland in Washington, with additional reporting from Ahmed Aboulenein and Jarrett Renshaw in Washington, Maggie Fick in London, Patrick Wingrove in New York, and Mariam E. Sunny in Bengaluru. Caroline Humer and Bill Berkrot served as editors.
