TL/DR –
Donald Trump has announced a deal with AstraZeneca for a “most-favored-nation” drug-pricing model targeted at making prescription medicines more affordable. AstraZeneca will sell some medicines at a discounted price to the government’s Medicaid health plan in exchange for tariff relief, a model similar to a previous agreement with Pfizer. The deal is part of the White House’s wider goal of lowering US prescription medicine prices, with AstraZeneca and Pfizer being the first two companies to reach an agreement.
Trump’s AstraZeneca Deal to Lower US Prescription Drug Prices
Donald Trump announced a “most-favored-nation” drug-pricing deal with British drugmaker AstraZeneca. This model targets affordable prescription medicines and evades tariff threats. Following a similar drug-pricing pact with Pfizer, AstraZeneca will sell certain medicines to the government’s Medicaid health plan at a discount in exchange for tariff relief.
The announcement, made from the Oval Office, also included comments from AstraZeneca CEO Pascal Soriot about the challenging negotiations. This deal paves the way for achieving the White House’s goal of reducing US prescription medicine prices.
Under the agreement, AstraZeneca will offer most-favored-nation pricing to Medicaid, ensuring the lowest prices for new drugs. With Americans paying some of the world’s highest prescription drug prices, Trump stated that this deal could reduce prices significantly.
Contradicting Trump’s claim of a 1,000% price decrease, health economist Timothy McBrideclarified on CNN that a price reduction above 100% would imply consumers getting paid to purchase their medications, which is illogical.
The deal with AstraZeneca cuts prices for the government’s Medicaid health plan and offers discounted prices through a “TrumpRx” website. Similar to Pfizer’s recent agreement, AstraZeneca will reduce prescription drug prices in the Medicaid program in exchange for tariff relief.
However, with Medicaid already receiving the lowest drug prices in the US, the additional savings may be modest, according to Craig Garthwaite, a professor at Northwestern University. He added that AstraZeneca’s portfolio does not include many drugs that would yield a significant discount for Medicaid.
Trump has been pushing drugmakers to lower their prices or face stiff tariffs, as Americans pay nearly three times more for prescription medicines than in other developed nations. After threatening 100% tariffs on drugmakers, Trump increased pressure on the pharmaceutical industry to agree to price cuts and shift manufacturing to the US.
AstraZeneca’s deal may exempt it from tariffs but will not significantly affect the US’s rising health insurance premiums and out-of-pocket drug costs, according to Rena Conti, an associate professor at Boston University.
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