AstraZeneca Secures U.S. Pharmaceutical Tariff Waiver in Exchange for Significant Drug Price Cuts

Gelonghui October 11 | On Friday local time, U.S. President Trump announced that the government had reached an agreement with AstraZeneca, under which the latter would significantly cut consumer prices for some drugs in exchange for a three-year tariff exemption for the pharmaceuticals industry. The prices of all new drugs launched by the company in the United States will be aligned with the lowest levels in comparable countries, and the drugs will be supplied to the Medicaid program, which targets low-income and disabled individuals, at a substantial discount. In addition, AstraZeneca will expand the range of products sold on its direct sales website “AstraZeneca Direct” at what Trump described as "the best" prices, and has agreed to provide these drugs directly to Medicaid patients via the upcoming government website TrumpRx.gov. Previously, Pfizer also reached a similar agreement with the U.S. government and received a three-year drug tariff exemption on the condition that it continues to invest in U.S. manufacturing.