AstraZeneca has agreed to sell some of its medicines at discounted rates to the US Medicaid program in exchange for tariff relief, following a similar deal made by Pfizer last week.
Donald Trump announced the agreement at the White House on Friday, saying it would bring “the lowest prices anywhere in the world.” The deal introduces a “most-favored-nation” model, meaning AstraZeneca will match the lowest prices it offers in other developed nations.
AstraZeneca CEO Pascal Soriot, who joined Trump for the announcement, said the negotiations were “tough” and had “kept me up at night.”
Under the plan, AstraZeneca will offer discounts to Medicaid, which provides healthcare for more than 70 million low-income Americans, and will also feature reduced prices on a new “TrumpRx” website.
Critics, however, say the impact will likely be modest. “If you look at AstraZeneca’s portfolio, I don’t think there are many drugs where this means a big discount,” said Craig Garthwaite of Northwestern University.
Trump claimed the deal could cut prices by “up to 1,000%,” a statement widely debunked by economists. “That’s not logical,” said health policy expert Timothy McBride. “A 500% cut would mean people get paid to buy their medicine.”
The president has been pressuring pharmaceutical companies to lower US prices or face tariffs of up to 100%. AstraZeneca’s deal may spare it from those tariffs, though experts doubt it will meaningfully reduce insurance premiums or out-of-pocket costs for Americans.
“It’s good for the companies,” said Rena Conti of Boston University, “but has very uncertain benefits for Americans struggling to afford their prescriptions.”
