AstraZeneca has agreed to lower prescription drug costs for Medicaid under a deal with the Trump administration
AstraZeneca on Friday became the second major pharmaceutical manufacturer to announce it had agreed to lower the cost of prescription drugs for Medicaid under a deal struck with the Trump administration that avoided its threats of steep tariffs.
President Donald Trump made the announcement in the Oval Office with AstraZeneca CEO Pascal Soriot, who said that during tough negotiations to reach a deal, Trump and his team of officials had “really kept me up at night.”
Under the agreement, AstraZeneca will charge most-favored-nation pricing to Medicaid, while guaranteeing such pricing on newly launched drugs, Trump said. That involves matching the lowest price offered in other developed nations.
“For many years, Americans have paid the highest prices in the world for prescription drugs, by far,” Trump said, adding that the new deal may cut prices to “the lowest price anywhere in the world. That’s what we get.”
AstraZeneca’s deal follows a similar agreement Pfizer announced late last month. Advocates have generally praised the administration’s efforts to cut drug prices, though some have expressed concerns that too much onus is being placed on the manufacturers to lower costs without implementing U.
