AstraZeneca to Slash US Drug Prices as NHS Faces Pressure for Price Rises

AstraZeneca has announced a major shift in its transatlantic pricing strategy, pledging to sharply reduce the cost of its medicines in the United States following mounting political pressure. The pharmaceutical giant’s move comes as it simultaneously seeks higher prices from the UK’s National Health Service, arguing that America has long shouldered an unfair share of the global bill for drug development.

The reshaping of AstraZeneca’s approach reflects direct intervention from President Donald Trump, who has repeatedly criticised European nations for “freeloading” off American pharmaceutical innovation. Trump secured a landmark deal granting AstraZeneca a three year exemption from steep US drug tariffs in return for significant discounts on prescription medications supplied to Medicaid, the publicly funded programme for low income Americans.

The company has also pledged to invest £37 billion in US manufacturing facilities, deepening its commitment to onshoring jobs and production. Chief executive Pascal Soriot stated that for years America has disproportionately funded the research and development required for breakthrough medicines, calling the status quo unsustainable. Soriot insisted it was time for a rebalancing, with wealthy countries sharing more of the burden both in costs and risk.

These developments come at a time of heightened tension between AstraZeneca and the British government. The firm has openly criticised Britain’s drug pricing policies, warning that the current cap on branded drug expenditure and lack of governmental support threaten future investment in the UK. Recently, AstraZeneca put on hold a £200 million upgrade of its Cambridge research facility, underlining the seriousness of its intentions.

The pharmaceutical sector has reacted swiftly to the White House’s policies. In September, AstraZeneca’s shares slipped after Trump announced impending tariffs on imported medicines, sparing only those companies that invested in American manufacturing capacity. Industry peer Pfizer also inked a similar deal, securing three years of tariff relief in exchange for a £52 billion manufacturing investment and significant discounts for US Medicaid patients.

As the global pharmaceutical market recalibrates, AstraZeneca’s bold cost cutting pledge in the United States is likely to be watched closely by both competitors and regulators. With government scrutiny on cross border price disparities intensifying, the balance of pharmaceutical power between the US and Europe has clearly entered a new phase.