AstraZeneca to lower some US drug prices, boost domestic manufacturing in government deal

AstraZeneca PLC has reached an agreement with the U.S. government to lower the cost of some prescription medicines for American patients and significantly boost its domestic manufacturing.

As part of the deal, the British drugmaker will offer direct-to-consumer sales for certain chronic disease medications at discounts of up to 80% off list prices, the company said Monday.

AstraZeneca will also participate in a government-run direct purchasing platform.

In return, the U.S. Department of Commerce agreed to a three-year delay on certain tariffs, enabling the company to onshore its manufacturing operations.

The move is supported by AstraZeneca's previously announced plan to invest $50 billion in U.S. manufacturing and R&D over the next five years, with the goal of making all its medicines sold in America domestically.

"Every year AstraZeneca treats millions of Americans living with cancer and chronic diseases and, as a result of today's agreement, many patients will access life-changing medicines at lower prices," Chief Executive Pascal Soriot said in a statement.

The company recently broke ground on a new facility in Virginia, its largest single manufacturing investment to date.

AstraZeneca aims to generate half of its targeted $80 billion in total revenue from the U.S. by 2030, according to the company.