Astrazeneca, US Administration Agree To Cut Prices, Delay Tariffs

LONDON, Oct 12 (Bernama-dpa) -- British drug producer AstraZeneca announced a major agreement with US President Donald J. Trump's administration aimed at reducing the cost of prescription medicines for US patients while supporting domestic pharmaceutical innovation, reported German news agency dpa.

Under the deal, AstraZeneca will offer Direct-to-Consumer (DTC) sales at discounts of up to 80 per cent off list prices for eligible patients with prescriptions for chronic conditions. These discounted medicines will be available through the TrumpRx.gov platform, enabling patients to purchase directly from AstraZeneca at reduced cash prices.

In addition, AstraZeneca has secured a three-year delay on Section 232 tariffs through a separate agreement with the US Department of Commerce. This reprieve will allow the company to fully onshore its medicines manufacturing operations, ensuring that all products sold in the US are made domestically. 

The initiative is part of AstraZeneca's broader US$50 billion investment in US manufacturing and research and development (R&D) over the next five years, with a goal of reaching US$80 billion in total revenue by 2030-half of which is expected to come from the US market.

Looking ahead, AstraZeneca plans to open a cell therapy manufacturing facility in Rockville, Maryland in early 2026, followed by the launch of its second major R&D centre in Cambridge, Massachusetts later that year.

This marks the second such agreement between a pharmaceutical company and the US Department of Health and Human Services in recent weeks.

Last month, Pfizer reached a similar deal with the Trump administration, securing a three-year exemption from broad pharmaceutical tariffs that had previously been threatened. Specific terms of AstraZeneca's agreement remain confidential. 

--BERNAMA-dpa