Trump reaches settlement on drug costs with AstraZeneca

US President Donald Trump attends a bilateral meeting with Finnish President Alexander Stubb (not pictured) in the Oval Office at the White House in Washington, DC, USA on October 9, 2025.

Nathan Howard | Reuters

The Trump administration and AstraZeneca announced on Friday that it had reached an agreement for the British pharmaceutical giant to reduce drug prices in the United States

The deal with AstraZeneca follows a similar pact with the US drugmaker Pfizerwhich was announced late last month.

AstraZeneca will agree to sell drugs directly to Medicaid patients at the lowest price offered in other developed countries, or what Trump calls the “most favored nation” price, on a future government website called TrumpRx.gov. AstraZeneca’s primary care drugs will be available on the site starting early next year, and the company will offer new prescription drugs at the nation’s most favored nation price, said Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services.

AstraZeneca CEO Pascal Soriot also said the company would be exempt from pharmaceutical sector tariffs under the agreement. Pfizer agreed to similar terms with the Trump administration, receiving a three-year exemption from drug tariffs on the condition that the company continues to invest in U.S. manufacturing.

AstraZeneca said in July it would invest $50 billion in the U.S. by 2030. The company provided further details on these plans on Friday, ahead of the pricing agreement announcement.

President Donald Trump, administration officials and Soriot announced the agreement during an event at the White House on Friday.

MSNBC previously reported on the deal.

Trump has pushed drugmakers to cut prices and expand production in the U.S. as the extremely high cost of drugs compared to other developed countries angers voters across the political spectrum. As his administration threatened pharmaceutical companies with tariffs of up to 250% in recent months, many drugmakers announced significant investments in the United States

Trump has said he wants to reach pricing agreements with other major drugmakers in the coming weeks. Trump suggested that drugmakers and other companies had invested as much as before because of the threat of higher tariff costs.

“Most of them are here because of the tariffs,” he said.