AstraZeneca has reached a deal with Donald Trump’s administration to sell some medicines at discounted prices to the US Medicaid program in exchange for tariff relief.
Announced at the White House on Friday, the agreement mirrors a similar pact made with Pfizer last week. AstraZeneca’s CEO, Pascal Soriot, joined Trump for the announcement, saying the negotiations had been “tough” and had “kept me up at night.”
Under the deal, AstraZeneca will match the lowest drug prices offered in other developed nations – the so-called “most-favored-nation” pricing. Trump claimed the deal could slash US prescription costs to “the lowest price anywhere in the world.”
“For many years, Americans have paid the highest prices for prescription drugs,” Trump said. “That ends now.”
Economists, however, questioned Trump’s exaggerated claims that prices could fall by up to 1,000%. “Cutting drug prices by more than 100% would mean people are paid to take medicine,” said health economist Timothy McBride.
More than 70 million low-income Americans are covered by Medicaid, but experts say the savings from the AstraZeneca deal will likely be modest. “I don’t think there are many drugs where this will mean big discounts,” said Craig Garthwaite of Northwestern University.
AstraZeneca’s deal is expected to shield the company from Trump’s threatened 100% tariffs on pharmaceutical imports. Still, analysts warn the move will have little impact on Americans’ overall healthcare costs.
“It’s good for the companies,” said Boston University’s Rena Conti, “but uncertain if it helps Americans struggling with drug affordability.”
