AstraZeneca reaches agreement with US government to reduce drug prices

Published 14/10/2025, 11:20
AstraZeneca reaches agreement with US government to reduce drug prices

AstraZeneca PLC (NASDAQ:AZN) announced Monday that it has reached an agreement with the US government to lower the cost of prescription medicines for American patients. The company said the agreement was made with the administration of President Donald J. Trump and includes several commitments regarding drug pricing and domestic manufacturing.

Under the agreement, AstraZeneca will offer direct-to-consumer sales to eligible patients with prescriptions for chronic diseases at discounts of up to 80% off list prices. The company will participate in the TrumpRx.gov direct purchasing platform, allowing patients to purchase medicines at reduced cash prices.

AstraZeneca also stated that it has reached an arrangement with the US Department of Commerce to delay Section 232 tariffs for three years. This measure will enable the company to fully onshore production so that all medicines sold in the US are manufactured domestically. AstraZeneca plans to invest $50 billion in US manufacturing and research and development over the next five years, as previously announced.

The company broke ground on its largest single manufacturing facility to date in Virginia on Sunday. It also plans to open an expanded manufacturing facility in Coppell, Texas next week, a cell therapy manufacturing facility in Rockville, Maryland early next year, and a second major R&D center in Cambridge, Massachusetts in late 2026.

AstraZeneca’s US workforce exceeds 25,000 employees and supports more than 100,000 jobs nationwide. In 2025, the company reported creating approximately $20 billion of value to the US economy.

This is the second agreement in the past two weeks between a pharmaceutical company and the US Department of Health and Human Services to lower drug costs. Specific terms of the AstraZeneca agreement remain confidential, according to the company’s statement.

All information in this article is based on a press release statement filed with the US Securities and Exchange Commission.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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