President Donald Trump on Friday announced a new agreement with pharmaceutical giant AstraZeneca to dramatically lower prescription drug costs for American patients while boosting domestic manufacturing and research.
The agreement, the second major pharmaceutical company to accept Trump’s push for most-favored-nation pricing, could save hundreds of millions for state Medicaid programs while delivering steep discounts to patients who buy medications directly, according to a White House fact sheet. It represents Trump’s latest effort to end what he calls foreign “freeloading” on American innovation.
According to a White House fact sheet and AstraZeneca’s announcement, the arrangement could save hundreds of millions of dollars for Medicaid programs nationwide and deliver price cuts of up to 80% off list prices for patients purchasing directly from the company. AstraZeneca’s AIRSUPRA, BREZTRI AEROSPHERE, and BEVESPI AEROSPHERE inhalers will be included among the discounted medicines for asthma and chronic obstructive pulmonary disease (COPD).
“In case after case, our citizens pay massively higher prices than other nations pay for the same exact pill, from the same factory, effectively subsidizing socialism abroad with skyrocketing prices at home,” Trump said at the White House event announcing the agreement.
AstraZeneca CEO Pascal Soriot joined the president in Washington, calling the deal “a historic agreement” that delivers on all four requests in Trump’s July 31 letter to leading pharmaceutical executives.
“Many patients will access life-changing medicines at lower prices,” Soriot said. “This new approach also helps safeguard America’s pioneering role as a global powerhouse in innovation.”
Massive U.S. Investment and Job Growth
As part of the accord, AstraZeneca pledged a $50 billion investment in American manufacturing and research by 2030. The company has begun construction on a new Charlottesville, Virginia facility expected to create 3,600 jobs producing advanced pharmaceutical ingredients for cancer and chronic-disease treatments. Additional projects include expansions in Coppell, Texas, Rockville, Maryland, and a forthcoming R&D center in Cambridge, Massachusetts.
The company also reached an agreement with the U.S. Department of Commerce to delay Section 232 tariffs for three years while it completes plans to fully onshore production of medicines sold in the United States.
Impact on Patients and Policy
Roughly 9 million Americans currently use AstraZeneca medications. The White House said the agreement especially benefits the 25 million people with asthma and 16 million with COPD, both of which drive major healthcare spending and remain leading causes of death.
The MFN pricing model stems from Trump’s May 12 executive order directing federal agencies to pursue international price parity. Supporters argue it will curb foreign “freeloading” on U.S. innovation by preventing manufacturers from subsidizing lower overseas prices through higher domestic costs.
Critics warn that aggressive price caps could discourage investment in new drugs.
Friday’s announcement underscores Trump’s broader campaign to overhaul the pharmaceutical sector through direct negotiations, trade leverage, and transparency mandates. With two major global drugmakers now on board, the administration signaled more agreements could follow in the weeks ahead.