AstraZeneca has succumbed to pressure from US president Donald Trump to reduce the cost of its medications for American patients.
The Cambridge-headquartered pharmaceutical giant announced it will offer direct-to-consumer sales to qualifying patients with prescriptions for chronic conditions at discounts of up to 80 per cent off list prices, whilst also joining the US government's new direct purchasing platform, enabling patients to buy medicines at reduced cash prices, as reported by .
AstraZeneca stated the initiative, which satisfies the rigorous new demands Trump has placed on pharmaceutical companies, would enable it to avoid any tariffs levied on the sector for at least the next three years.
However, the company did not outline the scale of the financial impact it would face from the price reductions.
Pascal Soriot, Chief Executive Officer, AstraZeneca, said the move "helps safeguard America's pioneering role as a global powerhouse in innovation and developing the next generation of medicines."
"It is now essential other wealthy countries step up their contribution to fund innovation."
AstraZeneca's pivot to the US
The initiative represents the latest indication of AstraZeneca's shift towards the US to avoid Donald Trump's ire as he threatens tariffs on pharmaceutical companies, citing pricing disparities between medicines sold in the US and elsewhere. In July, the company revealed intentions to invest up to $50bn in US manufacturing and R&D after abandoning its º£½ÇÊÓƵ expansion plans, dealing a setback to the government's industrial strategy.
The business stated it would deploy this substantial sum over the coming five years, including on a new Virginia manufacturing facility representing its largest-ever single manufacturing investment.
This was subsequently followed in September by a move to 'upgrade' its US listing, replacing its current Nasdaq listing of American Depositary Receipts (ADRs), a form of listing for trading overseas shares, with a direct listing of ordinary shares on the New York Stock Exchange.
Astrazeneca explained it made this decision to provide "the flexibility to access the broadest possible available pool of capital."
In the º£½ÇÊÓƵ, the company has scrapped its plans to construct a £450m manufacturing plant in Merseyside, citing insufficient government support.
