AstraZeneca to cut US drug prices in key White House deal

(Sharecast News) - AstraZeneca has struck a deal with the White House to cut drugs prices in America, allowing it to avoid steep tariffs on US imports. In a statement released on Monday, the Anglo-Swedish blue chip said it will provide direct-to-consumer sales to eligible patients with prescriptions for chronic disease at a discount of up to 80% off list prices.

In return, the US Department of Commerce has agreed to delay section 232 tariffs for three years. AstraZeneca will onshore manufacturing during that time, it confirmed, so that "all medicines sold in America are made in America".

The agreement - specific details of which remain undisclosed - was first unveiled at a White House event over the weekend.

Pascal Soriot, chief executive, said: "As a result of today's agreement, many patients will access life-changing medicines at lower prices.

"This new approach also helps safeguard America's pioneering role as a global power house in innovation and develop9ing the next generation of medicines."

Donald Trump has cracked down on the global pharmaceutical sector in recent months. In September, he said levies of 100% would be imposed on branded drug imports, effective 1 October, unless companies had already started building facilities in the US.

In July, AstraZeneca announced plans to spend $50bn to expand its US manufacturing and research capabilities by 2030. It also plans to list directly on Wall Street.