Trump delivers big victory as AstraZeneca joins Pfizer in lowering US drug prices

President Donald Trump scored a major victory Friday when AstraZeneca agreed to lower prescription drug prices under Medicaid – a move that follows a similar deal by Pfizer and is a centerpiece of the administration’s efforts to make drugs cheaper.

According to APthe deal, announced publicly at an event in the White House Oval Office, commits AstraZeneca to Medicaid rates under the most-favored-nation clause.

This means the company will match the lowest drug prices offered in other wealthy countries.

Trump celebrated the deal, saying it could make U.S. prices the “lowest prices in the world.”

During Trump’s announcement, he was joined by AstraZeneca CEO Pascal Soriot. He later admitted in a wry tone that the negotiations had been intense: the president and his team “really kept me up at night.”

Under the new agreement, AstraZeneca will also guarantee the price standard for newly introduced drugs.

The move follows Pfizer’s recent agreement with the administration. Both deals are based on an executive order Trump signed in May: drugmakers were given the option to voluntarily lower prices or face tighter government payment limits.

Trump touts AstraZeneca’s $4.5 billion offer

Trump reacted sharply to AstraZeneca’s initial resistance and joked: “Tariffs were the main reason he came here.”

The president also emphasized AstraZeneca’s commitment to increase U.S. production, announcing a new $4.5 billion manufacturing facility in Virginia, just part of a $50 billion investment plan through 2030.

This facility alone is expected to create approximately 3,600 U.S. jobs.

AstraZeneca, based in Cambridge, U.K., produces drugs such as Tagrisso for lung cancer, Lynparza for ovarian cancer and Calquence for leukemia – together they generated more than $7.5 billion in U.S. sales last year.

While the announcements were praised by drug cost advocates, some experts warn that placing all hope on drugmakers could be risky without stronger U.S. policies to support them.

Questions remain about how much patients and states will truly benefit, given that Medicaid already provides “best price” coverage and most patients do not pay the full cost out of pocket. CBS News reported.

Trump also introduced a new initiative: a website called TrumpRx.gov, which will be available in January 2026.

Patients will be able to order medicines directly from Roche and AstraZeneca through this website at discounted cash prices.