Trump's call for global cooperation to lower drug prices and AstraZeneca's $50 billion investment in the US economy.

President Trump demands change in prescription medication prices, sending 17 letters to pharma CEOs. He wants other rich countries to share the cost of R&D, which could lower prices. AstraZeneca CEO Pascal Soriot agrees, supporting price equalization between countries. The company will invest $50 billion in the US over five years.

In a significant move to address escalating prescription drug prices, U.S. President Donald Trump has sent letters to the chief executives of 17 major pharmaceutical companies, urging them to implement immediate measures to reduce costs for American patients [1]. The White House has outlined specific demands, including extending most favored nation pricing to Medicaid, guaranteeing such pricing for new drugs, and returning excess overseas revenue to American patients and taxpayers [1].

Among the recipients were top executives from AstraZeneca PLC, Eli Lilly and Co, Johnson & Johnson, and others. The president has set a deadline of September 29 for the companies to respond with binding commitments to these terms [1]. White House press secretary Karoline Leavitt stated that Americans pay more than three times the price for brand-name drugs compared to other similarly developed nations [1].

In a related development, AstraZeneca CEO Pascal Soriot expressed support for the president's initiative. Soriot agreed that the cost of research and development (R&D) should be fairly shared among rich countries, advocating for a price equalization system that could potentially lower drug prices for American consumers [2]. AstraZeneca has announced a $50 billion investment plan over the next five years in the United States, aligning with the company’s $80 billion revenue target [2].

The Trump administration plans to use authority under the U.S. Trade Representative’s Office and the Commerce Department to monitor the progress of rebalancing the price of medications. White House officials hope this will be a cooperative effort with pharmaceutical companies and likened it to extending a hand to help other countries share the cost burden for medications [3].

The initiative aims to address the disparity in drug pricing between the United States and other wealthy nations. The administration is prepared to take a voluntary approach but is also ready to enforce changes through regulatory processes if necessary [3].

References:
[1] https://www.reuters.com/business/healthcare-pharmaceuticals/trump-pressures-17-pharma-ceos-cut-us-drug-prices-2025-07-31/
[2] https://www.ainvest.com/news/astrazeneca-shares-rally-2-99-surpassing-q2-earnings-sales-growth-trading-volume-spikes-93-56-rank-92nd-2507/
[3] https://www.foxbusiness.com/politics/trump-leveling-global-medicine-playing-field