President Donald Trump announced a new pharmaceutical pricing deal with AstraZeneca that will tie the company’s U.S. drug prices to the lowest rates charged in other developed countries. The agreement expands the administration’s “most-favored-nation” (MFN) pricing initiative, which aims to reduce prescription drug costs for American consumers. This marks the second major deal under this policy, following a similar agreement with Pfizer in September.

Under the new terms, AstraZeneca will offer its prescription drugs to all state Medicaid programs at the lowest price charged globally. The administration estimates this move could save taxpayers hundreds of millions of dollars annually. Trump emphasized that Americans have long paid the highest drug prices globally, and the new deal seeks to end that disparity by ensuring fairer, internationally competitive rates.

The deal covers a range of medications for asthma, COPD, cardiovascular disease, and cancer, potentially benefiting around 9 million Medicaid patients. The agreement also includes substantial price reductions for certain respiratory medications. For instance, BEVESPI AEROSPHERE for COPD will be discounted by 654 percent, and AIRSUPRA, an asthma inhaler, by 96 percent for direct consumers.

In addition to pricing reforms, AstraZeneca has committed to investing $50 billion in U.S. pharmaceutical manufacturing and research by 2030. A significant part of this investment includes a new production facility in Charlottesville, Virginia, expected to create 3,600 jobs and enhance domestic supply chain resilience for critical medications.

The agreement complements the administration’s broader TrumpRx platform, which allows patients to purchase medications directly from manufacturers at reduced prices. Pfizer, part of a similar arrangement, will offer its products at discounts averaging 50 percent. These deals are part of Trump’s push to align U.S. drug prices with global norms and reduce foreign price advantages.

Trump framed the announcement as a victory for American patients and taxpayers, saying the deal will provide immediate relief and make the U.S. a leader in fair drug pricing.