AstraZeneca to cut US diabetes and asthma drug prices by up to 70% after Trump pressure

AstraZeneca to cut US diabetes and asthma drug prices by up to 70% after Trump pressure

AstraZeneca plc (AZN) has announced a significant reduction in prices for its U.S. diabetes and asthma drugs, citing pressure from recent tariff announcements by President Donald Trump. The move comes as the pharmaceutical industry braces for the impact of the new 100% tariffs on branded and patented drugs, set to take effect on October 1 .

The new tariffs, which target about $220 billion of U.S. pharmaceutical imports, could significantly increase costs for drugmakers lacking U.S. production facilities. AstraZeneca, one of the largest pharmaceutical companies in the world, has been proactive in addressing this potential impact. The company has unveiled multi-billion-dollar investment plans in the U.S. this year, including a construction project in Delaware to strengthen its domestic supply chain .

The price cuts for AstraZeneca's diabetes and asthma drugs, which are among its top-selling products, are expected to help offset the increased costs associated with the new tariffs. The company has not disclosed the exact percentage reduction for each drug, but it has indicated that prices could be cut by up to 70%. This move is part of a broader strategy by AstraZeneca to remain competitive in the U.S. market and mitigate the effects of the tariffs.

The tariffs have had a significant impact on European and Asian pharmaceutical stocks, with major drugmakers such as Lonza, Novartis, and Roche experiencing declines in their share prices. The EU pharma sector, which supplies about 60% of U.S. pharmaceutical imports, is particularly vulnerable to the tariffs .

AstraZeneca's decision to cut prices is likely to be closely watched by investors and financial professionals, as it sets a precedent for other drugmakers facing similar challenges. The company's actions may also influence the broader pharmaceutical industry's response to the tariffs, potentially leading to further price adjustments and investment in U.S. manufacturing facilities.