AstraZeneca Joins Pfizer in U.S. Drug Pricing Program
The Big Pharma companies have voluntarily agreed to a range of measures to reduce the cost of medicines for American patients while also preserving the biopharmaceutical innovation ecosystem of the U.S.
AstraZeneca has entered into an agreement with the U.S. government to lower the cost of prescription medicines for eligible U.S. patients while also helping to maintain the country’s role as a biopharmaceutical innovator (1). This latest announcement means that two Big Pharma companies — both AstraZeneca and Pfizer, which reached an agreement in September 2025 (2) — are participating in President Donald J. Trump’s “most favored nation” drug pricing program.
During an event at the White House, Pascal Soriot, CEO of AstraZeneca, joined President Trump and members of his administration to formalize the agreement and confirm that all requests, as set out in a letter from the President on July 31, 2025, were met (1). Under the terms of the agreement, AstraZeneca will provide eligible patients with chronic diseases direct-to-consumer (DTC) sales of prescription drugs, which relates to a discount from the list prices of up to 80%. Additionally, the company will participate in the TrumpRx.gov platform, which is a purchasing site for patients to buy their prescriptions directly at a reduced cash price.
“Every year AstraZeneca treats millions of Americans living with cancer and chronic diseases and, as a result of [this] agreement, many patients will access life-changing medicines at lower prices,” said Soriot, in a company press release (1). “This new approach also helps safeguard America’s pioneering role as a global powerhouse in innovation and developing the next generation of medicines. It is now essential other wealthy countries step up their contribution to fund innovation.”
Furthermore, AstraZeneca has reached an agreement with the U.S. Department of Commerce so that it is exempt from Section 232 tariffs for three years. Through this arrangement, the company will be able to onshore its medicines manufacturing — which it hopes to achieve through its USD 50 billion investment into U.S. manufacturing and R&D over the course of the next five years.
Earlier in October, AstraZeneca revealed its plans to invest USD 4.5 billion in a new manufacturing facility in Virginia, which will be used for the development and manufacture of a wider range of medicines (2). Located at Rivanna Futures in Albemarle County, the company anticipates that the facility will create approximately 3,600 direct and indirect jobs and will be a cornerstone in its overall investment into U.S. medicines manufacturing and R&D (3).
“With our $4.5 billion investment in Virginia, the largest in AstraZeneca’s history, we are not only building a state-of-the-art manufacturing facility, but also driving life sciences innovation and economic growth,” commented Soriot, in a press release about the new facility (3). “This new facility will create thousands of jobs and strengthen America’s national security and health sovereignty. I also want to thank Governor Youngkin and his team for their energy and vision. We have found in Virginia an amazing team that moves at incredible speed to build a better future for this Commonwealth and the American people.”
References
AstraZeneca. AstraZeneca Announces Historic Agreement with U.S. Government to Lower the Cost of Medicines for American Patients. Press Release, Oct. 10, 2025.
Pfizer. Pfizer Reaches Landmark Agreement with U.S. Government to Lower Drug Costs for American Patients. Press Release, Sept. 30, 2025.
AstraZeneca. AstraZeneca Plans to Increase Investment and Scope of its Virginia Manufacturing Facility to USD 4.5 Billion, Creating 3,600 New Jobs. Press Release, Oct. 9, 2025.