AstraZeneca CEO Proposes US Price Cuts, Advocates for Global Pricing Rebalance

AstraZeneca's CEO Pascal Soriot has revealed that the company has proposed price reduction plans for its drugs in the United States, while also expressing support for a global "rebalancing of pricing" in the pharmaceutical industry. This announcement comes amid ongoing discussions about drug pricing and manufacturing strategies in the US and globally.

US Pricing and Manufacturing Strategy

During a media call following AstraZeneca's second-quarter earnings report, Soriot disclosed that the company has engaged in numerous discussions with the US government regarding drug pricing concerns. "We have made proposals that would lead to price reductions of our products," Soriot stated, aligning with the broader industry trend of addressing US pricing pressures.

The CEO's comments come in the context of AstraZeneca's significant US presence, with the company planning a $50 billion investment in US manufacturing by 2030. This investment includes a major manufacturing site in Virginia, positioning the company to meet increasing demand for its medicines and achieve greater self-sufficiency in the US market.

Global Pricing Rebalance and European Challenges

Soriot emphasized the need for a global reassessment of drug pricing, stating, "I do believe a rebalancing of pricing around the world is necessary. The US can no longer pay for the R&D of the world." He advocated for "some reduction of pricing levels in the US" coupled with "some increase, although not massive increases, in Europe."

The CEO highlighted challenges in the European market, noting that the region is "falling behind" in terms of innovation, with access to necessary medicines being "very, very slow and very difficult." Soriot called on European countries to dedicate "a greater share of their GDP to pharmaceutical innovation" and "improve the environment" to foster investments that could boost the economy and advance medical breakthroughs.

AstraZeneca's Global Identity and Future Directions

Despite its growing US footprint, Soriot clarified that AstraZeneca remains a global company with a presence in "every country around the world" and maintains its commitment to the UK. However, he emphasized the company's desire to "behave in the US as a US company," reflecting its strategic focus on the American market.

AstraZeneca is exploring new business models, including direct-to-patient approaches for certain products such as weight loss medications, primary care drugs, and asthma-related products. Soriot noted that while this model "cannot apply to everything," the company is actively considering its implementation for select medicines.

As AstraZeneca navigates these complex global dynamics, industry observers will be watching closely to see how the company's pricing strategies and investment decisions unfold in the coming months and years.