AstraZeneca makes deal with Trump to lower drug prices and avoid tariffs

"Donald Trump announced a deal with the British-based drugmaker AstraZeneca for a most-favored-nation drug-pricing model aimed at making prescription medicines more affordable and avoiding the administration's tariff threats. The company will sell some medicines at a discount to the government's Medicaid health plan in exchange for tariff relief, similar to a drug-pricing pact reached last week with Pfizer. Trump began the Oval Office announcement on Friday evening by boasting that he would have struck the deal sooner, but we were interrupted by a rigged election."

"AstraZeneca CEO Pascal Soriot, who was in attendance, said that during tough negotiations to reach a deal, Trump and his team of officials had really kept me up at night. The deals set a framework the White House will use to try to reach its goal of lowering US prescription medicine prices. The president sent letters to 17 leading drugmakers in July telling them to slash prices."

"Under the agreement, AstraZeneca will charge most-favored-nation pricing to Medicaid, while guaranteeing such pricing on newly launched drugs, Trump said. That involves matching the lowest price offered in other developed nations. For many years, Americans have paid the highest prices in the world for prescription drugs, by far, Trump said, adding that the new deal may cut prices to the lowest price anywhere in the world. That's what we get."

"As Daniel Dale of CNN explained: Cutting drug prices by more than 100% would mean that Americans would get paid to acquire their medications rather than paying for them. A health economist, Timothy McBride, told the network Trump's claims are just not logical, since a 500% price reduction would mean that a drug that now costs $100 would be available"

AstraZeneca reached an agreement to provide most-favored-nation pricing to Medicaid and to guarantee that pricing for newly launched drugs in exchange for tariff relief. The deal mirrors a recent pact with Pfizer and is intended to match the lowest prices offered in other developed nations. The White House framed the pacts as a framework to reduce U.S. prescription medicine costs after letters sent to 17 major drugmakers. The AstraZeneca CEO said negotiations were intense. Critics noted claims of extreme percentage reductions are illogical, explaining that cuts greater than 100% would imply being paid to take medications.

Read at www.theguardian.com