Logo

Trump Announces Major Drug Pricing Agreement Aimed At Lowering Costs

Trump Announces Major Drug Pricing Agreement Aimed At Lowering Costs

President Donald Trump on Friday announced a new agreement with a major pharmaceutical manufacturer that will tie the company’s U.S. drug prices to the lowest rates offered in other developed countries, expanding the administration’s “most-favored-nation” policy for prescription drug costs.

 

The deal, unveiled during an Oval Office event with AstraZeneca Chief Executive Officer Pascal Soriot, follows a similar arrangement the administration announced in September with Pfizer. It marks the second major pharmaceutical pricing agreement under the White House’s executive order seeking to reduce medication costs for Medicaid and direct-to-consumer purchases.

Under the terms described by the White House, AstraZeneca will provide “most-favored-nation,” or MFN, pricing to all state Medicaid programs, meaning that U.S. patients will pay no more than the lowest price available for the same drugs in other developed countries. The administration said the agreement could save American taxpayers hundreds of millions of dollars annually.

“For many years, Americans have paid the highest prices anywhere in the world for prescription drugs,” Trump said. “Today, AstraZeneca is committing to offer all of their prescription medications to Medicaid at the most-favored-nation price—the lowest price anywhere in the world.”

The administration said the deal will benefit about 9 million patients currently taking AstraZeneca products. It will apply to a range of the company’s medications, including those used to treat asthma, chronic obstructive pulmonary disease (COPD), cardiovascular conditions, and cancer.

The agreement also includes a commitment from AstraZeneca to invest $50 billion in U.S. manufacturing and research and development by 2030. According to a White House fact sheet, the company will build a new pharmaceutical production facility in Charlottesville, Va., which is expected to create 3,600 jobs.

The new site will manufacture active pharmaceutical ingredients used in the company’s respiratory and oncology products.

 

The administration said the most significant price reductions will be seen in certain respiratory medicines. For example, the COPD treatment BEVESPI AEROSPHERE will reportedly be discounted by an average of 654 percent, while AIRSUPRA, an inhaler for asthma, will see a 96 percent price reduction for direct buyers. The company will also extend discounts to consumers who purchase drugs directly through a federal platform currently being developed by the Department of Health and Human Services.

Friday’s announcement comes just 10 days after Trump revealed a similar MFN agreement with Pfizer, which agreed to provide Medicaid with lower drug prices and participate in the new “TrumpRx” online platform.

That site will allow patients to buy medications directly from manufacturers at substantial discounts compared with retail pharmacy prices. Pfizer said at the time that many of its products, including vaccines, blood thinners, and cancer treatments, would be available at an average discount of 50 percent through the program.

The “most-favored-nation” pricing initiative is part of Trump’s broader effort to reduce the gap between U.S. and foreign prescription drug prices. The administration argues that American consumers have been subsidizing lower costs abroad because foreign governments use price controls and centralized purchasing to negotiate cheaper rates, while U.S. law restricts similar negotiations for federal programs like Medicare.

According to data cited by the White House, Americans pay more than three times as much as residents of other high-income countries for the same brand-name medications, even after accounting for rebates and insurance discounts. Officials said the new pricing model is intended to prevent pharmaceutical companies from charging higher prices domestically while offering lower prices internationally.

In addition to lowering drug costs, the administration said the AstraZeneca agreement will strengthen domestic supply chains and reduce reliance on overseas production. The White House said the Virginia facility would serve as a “strategic hub” for the production of advanced pharmaceutical ingredients used in chronic disease treatments.

The president framed the announcement as part of his ongoing effort to ensure that American patients “get the best deal anywhere in the world” on prescription drugs.

“This agreement will bring immediate relief to millions of Americans struggling with the cost of their medications,” Trump said. “It’s another step in putting American patients first.”

Comments (0)

Loading comments...

Tomahawk Strike Shocks the World
U.S. Tomahawk Hit Naval Base Beside Iranian School, Video Shows The evidence contradicts President Trump’s claim that Iran was responsible for a strike at the school that killed 175 people, most of them children. A newly released video adds to the evidence that an American missile likely hit an Iranian elementary school where 175 people, many of them children, were reported killed. The video, uploaded on Sunday by Iran’s semiofficial Mehr News Agency and verified by The New York Times, shows a Tomahawk cruise missile striking a naval base beside the school in the town of Minab on Feb. 28. The U.S. military is the only force involved in the conflict that uses Tomahawk missiles. A body of evidence assembled by The Times — including satellite imagery, social media posts and other verified videos — indicates that the Shajarah Tayyebeh elementary school building was severely damaged by a precision strike that occurred at the same time as attacks on the naval base. The base is operated by the Islamic Revolutionary Guards Corps. Asked by a reporter from The Times on Saturday if the United States had bombed the school, President Trump said: “No. In my opinion and based on what I’ve seen, that was done by Iran.” He said, “They’re very inaccurate, as you know, with their munitions.” Defense Secretary Pete Hegseth, who was standing beside Mr. Trump, said the Pentagon was investigating, “but the only side that targets civilians is Iran.” The video of the strike, which was first reported by the research collective Bellingcat, was independently verified by The Times. We compared features visible in the footage to new satellite imagery captured days after the strikes in Minab. The video was filmed from a construction site opposite the base and shows a worn, dirt path across a grassy area and piles of debris also evident in recent satellite imagery, bolstering its credibility. The video also comports with other verified videos taken in the immediate aftermath of the strikes. A Times analysis of the video shows the missile striking a building described as a medical clinic in the Islamic Revolutionary Guards Corps base. Plumes of smoke and debris shoot out of the building after it is hit as the distant screams of onlookers are heard. As the camera pans to the right, large plumes of dust and smoke are already billowing from the area around the elementary school, suggesting that it had been struck shortly before the strike on the naval base. This is supported by a timeline of the strikes assembled by The Times that shows the school was hit around the same time as the base. Several other buildings inside the naval base were also hit by precision strikes in the attack, an analysis of satellite imagery showed. Determining precisely what happened has been impeded by the lack of visible weapons fragments and the inability of outside reporters to reach the scene. The Times has identified the weapon seen in the new video as a Tomahawk cruise missile, a weapon that neither the Israeli military nor the Iranian military has. Dozens of Tomahawks have been launched by U.S. Navy warships into Iran since Feb. 28, when the U.S.-Israeli attack on Iran began.U.S. Central Command said a video it released of several Tomahawks being launched from Navy ships was filmed on Feb. 28, the day the Iranian base and school were hit. The Defense Department describes Tomahawks as “long-range, highly accurate” guided missiles that can fly about 1,000 miles. They are programmed with a specific flight plan before launch, and the missiles steer themselves to their targets.Each Tomahawk is about 20 feet long and has a wingspan of eight and a half feet, according to the Navy. The most commonly used Tomahawks have warheads that contain the explosive power of about 300 pounds of TNT. Trevor Ball, a former U.S. Army explosive ordnance disposal technician who works with Bellingcat, also identified the missile in the video as a Tomahawk, as did another weapons expert, Chris Cobb-Smith, director of Chiron Resources, a security and logistics agency. Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, said at a news conference on Wednesday that U.S. forces were carrying out strikes in southern Iran at the time the naval base and school were hit. A map he presented showed that an area including Minab, which is near the Strait of Hormuz, had been targeted by strikes in the first 100 hours of the operation, although it did not explicitly identify the town. “Along the southern axis, the U.S.S. Abraham Lincoln strike group has continued to provide pressure from the sea along the southeastern side of the coast and has been attriting naval capability all along the strait,” the general said. It is not the only time that General Caine has acknowledged the role Tomahawk missiles played in the early hours of the war. “The first shooters at sea were Tomahawks unleashed by the United States Navy,” he said in a briefing to reporters at the Pentagon on March 2, as the Navy “began to conduct strikes across the southern flank in Iran.” In June, a Navy submarine launched more than two dozen Tomahawks at a nuclear facility in Isfahan, Iran, as part of the 12-day war.