AstraZeneca’s Agreement with the U.S. Government
AstraZeneca announced a landmark agreement with the Trump administration to cut American prescription drug prices on October 10, 2025. This deal meets all four objectives President Trump made in a July 31, 2025 letter. It aims to keep the U.S. at the forefront of biopharmaceutical innovation while making drugs cheaper. Pascal Soriot, AstraZeneca’s CEO, stressed that the arrangement would allow many patients to receive life-changing medications at dramatically reduced prices, with discounts of up to 80% for eligible DTC buyers.
The deal requires AstraZeneca to invest $50 billion in U.S. manufacturing and R&D over the next five years to create $80 billion in sales by 2030, with 50% from the U.S. Delaying Section 232 tariffs for three years will allow the corporation to fully onshore its manufacturing activities. This pledge highlights AstraZeneca’s considerable presence in the U.S., employing over 25,000 people and supporting over 100,000 jobs.
Pfizer’s Landmark Agreement
Pfizer announced a similar arrangement with the U.S. government on September 30, 2025, to cut drug prices for Americans and support the biopharmaceutical ecosystem. Pfizer’s CEO, Albert Bourla, indicated that the arrangement would provide American patients comparable prescription pricing to other developed countries, with discounts up to 85%.
Patients can acquire medicines at lower prices through the TrumpRx direct purchasing platform under the deal. Pfizer also pledged to invest $70 billion in U.S. R&D and production, adding on its $83 billion 2018–2024 expenditures. This investment aims to boost the U.S. economy and sustain its medical innovation leadership.
EMD Serono’s Participation
On October 17, 2025, Merck KGaA’s U.S. arm, EMD Serono, announced their Trump administration deal, following AstraZeneca and Pfizer. Through this partnership, EMD Serono can provide its reproductive medications at an 84% discount on TrumpRx, drastically lowering the cost of in vitro fertilisation (IVF) procedures for patients. The pact supports the administration’s fertility treatment expansion and U.S. manufacturing endeavours.
Eli Lilly and Novo Nordisk
Eli Lilly and Novo Nordisk have also agreed to offer Most-Favoured-Nation (MFN) prices on their GLP-1 medicines, semaglutide (Ozempic and Wegovy) and tirzepatide (Mounjaro and Zepbound).
Most-Favoured-Nation Pricing Initiatives
MFN pricing arrangements have been criticised by senators, including Senator Bernie Sanders. They have asked how these agreements will interact with existing pharmaceutical discount programmes like the Medicaid Drug Rebate Program (MDRP) and for more information from the Department of Health and Human Services about the MFN pricing structure. Critics say the agreements’ lack of transparency and clarity could make it difficult for patients to benefit from price savings.
amcp.org. (2025). Federal Update: Trump Administration Announces Deal to Bring Most-Favored-Nation Pricing to GLP-1s. Retrieved from https://www.amcp.org/letters-statements-analysis/federal-update-trump-administration-announces-deal-bring-most-favored-nation-pricing-glp-1s
AstraZeneca. (2025). AstraZeneca announces historic agreement with US Government to lower the cost of medicines for American patients. Retrieved from https://www.astrazeneca-us.com/media/press-releases/2025/astrazeneca-announces-historic-agreement-with-us-government-to-lower-the-cost-of-medicines-for-american-patients.html
FiercePharma. (2025). Merck KGaA’s EMD Serono strikes MFN deal in Trump’s fertility treatment pricing push. Retrieved from https://www.fiercepharma.com/pharma/merck-kgaas-emd-serono-strikes-mfn-deal-trumps-fertility-treatment-pricing-push
Pfizer. (2025). Pfizer Reaches Landmark Agreement with U.S. Government to Lower Drug Costs for American Patients. Retrieved from https://www.pfizer.com/news/press-release/press-release-detail/pfizer-reaches-landmark-agreement-us-government-lower-drug
