Shares in AstraZeneca PLC (LSE:AZN, NASDAQ:AZN) fell 0.9% on Monday after it became the second giant drugmaker to announce a 'most favoured nation' drug pricing deal with the US government, after Pfizer's deal two weeks ago.
The deal was first announced by the White House after New York markets closed on Friday and confirmed via an RNS statement in London on Monday morning.
Pascal Soriot, the CEO of the Anglo-Swedish pharmaceutical group, met President Donald Trump to confirm the details, principally to bring American drug prices in line with the lowest paid by other developed nations.
This will see discounts of up to 80% offered on its medicines under prescriptions for chronic diseases on state Medicaid programmes, as well as making its drugs available on the TrumpRx.gov direct purchasing platform.
Some inhalers for chronic obstructive pulmonary disease will see discounts of over 90%, the White House said.
In return, a three-year delay to Section 232 tariffs has been agreed, based on the FTSE 100- and Nasdaq 100-listed company's commitment to manufacturing all its US-sold medicines in America, which is already its largest market by sales.
AstraZeneca said this is being supported by $50 billion of investment in domestic production and R&D, which was announced in July.
In late September, the group also announced the launch of AstraZeneca Direct, a direct-to-consumer online platform selling drugs for people living with chronic conditions such as asthma, diabetes, heart failure and chronic kidney disease, as well as flu protection medicines.
Soriot said: "As a result of today's agreement, many patients will access life-changing medicines at lower prices. This new approach also helps safeguard America's pioneering role as a global powerhouse in innovation and developing the next generation of medicines."
The company has 19 R&D, manufacturing and commercial sites in the US currently, with a workforce of over 25,000 people.
** UPDATE: Adds details, share price **