• Trump introduces a deal with AstraZeneca for discounted medications for U.S. consumers.
• AstraZeneca will provide drugs at up to 80% off, targeting Medicaid and chronic illness patients.
• The agreement includes a promise to support the new TrumpRx website.
• Similar deals have been made with Pfizer recently, reflecting broader drug pricing strategies.
• Experts question the actual impact on Medicaid and overall drug pricing challenges in the U.S.

U.S. President Donald Trump announced a new agreement with pharmaceutical giant AstraZeneca aimed at reducing prescription drug prices. This deal marks the second of its kind following a recent arrangement with Pfizer, and it will enable AstraZeneca to offer discounted prices for certain medicines directly to Medicaid patients. Trump emphasized that these prices would be set at "most-favored-nation" rates, ensuring no higher than the lowest prices available in other developed nations, according to Al Jazeera and CBS News.

The deal promises discounts of up to 80% on medications for eligible patients with prescriptions for chronic diseases. AstraZeneca has also committed to listing all primary care medications on a dedicated government website known as TrumpRx, which will help guide patients to lower prices. While this site is set to go live early next year, the company will not sell drugs directly but will point consumers to affordability options elsewhere, as outlined by AstraZeneca CEO Pascal Soriot, according to India Times and CBS News.

This new agreement with AstraZeneca follows Trump's broader strategy to impose steep tariffs on pharmaceutical companies unless they comply with pricing reforms. The administration has leveraged the potential for a 100% tariff threat to encourage pharmaceutical giants to reduce costs for American consumers. According to industry experts, while these negotiations have led to important agreements, the impact on Medicaid spending may be minimal due to existing pricing protections, as Medicaid already receives the lowest prices offered by any U.S. commercial payer, per statements by Darius Lakdawalla from the University of Southern California’s Schaeffer Center, reported in CBS News and India Times.

While the AstraZeneca agreement emerges as a sign of progress in negotiating lower drug prices, analysts caution that it may not resolve the ongoing issues of escalating healthcare costs in the U.S. Critics within the healthcare community have expressed skepticism regarding how much these deals truly benefit the average consumer, especially when most prescription drug purchases are made through insurance. Health economist Sean Sullivan suggests the direct-to-consumer pricing strategy may serve more as a branding initiative rather than a substantial solution to America's high drug prices, according to CBS News and India Times.