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AstraZeneca PLC on Monday confirmed it has reached a ‘historic’ drug pricing agreement with the Donald Trump administration in the US. The agreement, which follows a similar accord announced last month with Pfizer Inc, requires AstraZeneca to charge ‘Most Favored Nation’ pricing matching the lowest price offered in other wealthy nations to Medicaid, the US health insurance programme for low-income Americans. The company added that specific terms of the agreement remain confidential. In exchange, Trump administration officials agreed to a three-year delay on new tariffs on AstraZeneca, which had previously announced plans to invest $50 billion in the US in response to looming tariff threats. AstraZeneca added: ‘AstraZeneca has also reached an agreement with the US Department of Commerce to delay section 232 tariffs for three years, enabling the company to fully onshore medicines manufacturing so that all of its medicines sold in America are made in America. This will be achieved through the company’s recently announced $50 billion investment in US medicines manufacturing and research & development over the next five years to help deliver $80 billion in total revenue by 2030, 50% of which is expected to be generated in the US.’ The firm continued: ‘AstraZeneca’s commitment to the US and American patients is further reflected in the company’s largest single investment in a manufacturing facility to date, where the company broke ground yesterday in Virginia. This facility will support AstraZeneca’s weight management and metabolic portfolio and our leading antibody drug conjugate cancer pipeline. Additionally, a newly expanded manufacturing facility in Coppell, Texas, will officially open next week. Looking ahead, AstraZeneca will open a cell therapy manufacturing facility in Rockville, Maryland early next year and its second major R&D centre in Cambridge, Massachusetts will open in late 2026.’ Separately on Monday, AstraZeneca reported it will announce data at an industry conference which will cement the ‘potential of Enhertu’ in HER2-positive early breast cancer. It also noted data will show the promise of Datroway in another form of breast cancer, with another report showing the benefit of Imfinzi in ‘early bladder and gastric cancers’. AstraZeneca is collaborating with Daiichi Sankyo Co Ltd to develop and commercialise Enhertu and Datroway. AstraZeneca shares were up 0.8% at 12,886.00 pence each on Monday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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