Trump and AstraZeneca Announce Landmark Deal to Cut Drug Prices in the U.S.

In a historic announcement from the Oval Office on Friday, U.S. President Donald Trump unveiled a major agreement with pharmaceutical giant AstraZeneca, aimed at lowering prescription drug prices for millions of Americans. The deal marks the first agreement with a non-U.S. drugmaker under Trump’s administration and is being hailed as a breakthrough in the president’s long-promised effort to bring down healthcare costs.

Standing alongside President Trump, AstraZeneca CEO Pascal Soriot appeared visibly relieved and upbeat after months of intense negotiations that began shortly after Trump’s election victory last year. According to three sources close to the discussions, the deal was the result of a series of public and private meetings between AstraZeneca executives and top U.S. officials — culminating in a last-minute push this week to finalize terms.

“You’ve kept me up at night — and my team as well,” Soriot joked to Trump during the signing ceremony. “But it’s been really worth it.”

A Year-Long Negotiation Effort

Sources revealed that Soriot’s campaign to align AstraZeneca with the Trump administration’s economic agenda began immediately after the 2024 U.S. election. Within days, AstraZeneca announced a $3.5 billion investment plan to expand its research and manufacturing operations in the United States.

Over the following months, Soriot met multiple times with U.S. Secretary of Commerce Howard Lutnick both in the U.S. and the U.K. He also built a strong relationship with Virginia Governor Glenn Youngkin, a close Trump ally, which proved instrumental in securing a separate $4.5 billion agreement to establish a new AstraZeneca production facility in Virginia.

Just one day before the Oval Office signing, Soriot and Youngkin broke ground at the Virginia site, a moment seen by insiders as a symbol of trust and shared economic vision.

“Governor Youngkin’s coordination with the White House helped accelerate the deal,” said one source. “The Virginia facility proved that both sides were working toward the same goals.”

A “Very American Company”

The AstraZeneca deal comes a week after Pfizer reached a similar agreement with the Trump administration — a move that boosted global pharmaceutical stocks. Analysts now expect more companies to follow AstraZeneca’s lead in the coming weeks.

Sean Conroy, a healthcare analyst at Shore Capital, noted that Soriot’s public support for Trump’s drug pricing initiative played a strategic role in the negotiations.

“By calling AstraZeneca a ‘very American company’ and publicly endorsing Trump’s efforts to reform pricing, Soriot secured a seat at the table in Washington,” Conroy said. “That rhetoric clearly resonated with the administration’s ‘Most Favored Nation’ pricing policy.”

Concessions and Wins

While the deal includes some concessions — such as lower prices for certain Medicaid drugs and commitments to expand local production — analysts view it as a major victory for AstraZeneca.

The agreement shields the Anglo-Swedish pharmaceutical company from potential 100% tariffs that Trump had threatened on imported medicines. It also provides regulatory clarity and reinforces AstraZeneca’s growing U.S. presence, which now includes over 15,000 employees and a $50 billion investment plan announced earlier this year.

AstraZeneca’s CEO has forecasted that the company’s revenue will hit $80 billion by 2030, with half of that growth expected to come from increased sales in the United States.

“Friday’s deal is the final piece of the puzzle,” one insider told Reuters. “It ensures AstraZeneca remains a top player in the U.S. pharmaceutical market — and a key partner to the Trump administration’s healthcare agenda.”

Key Takeaways

• First non-U.S. company to reach a formal drug pricing agreement with the Trump administration.

• Avoids heavy tariffs on imported medicines.

• $4.5 billion new plant to be built in Virginia, creating thousands of American jobs.

• Lower Medicaid prices and expanded U.S. manufacturing commitments.

• Strengthens AstraZeneca’s image as a “pro-American” global company.

President Trump praised AstraZeneca’s “commitment to fair pricing and American jobs,” calling the deal “a win for the American people and a model for the future.”

“This is what America First looks like — fair prices, strong partnerships, and jobs coming back home,” Trump declared at the Oval Office signing.

With this landmark agreement, AstraZeneca cements its place as one of the most strategically aligned international companies in Trump’s “America First” economic vision — setting a powerful precedent for global pharmaceutical diplomacy.