US President Donald Trump announced an agreement with the British company AstraZeneca, stating it will lead to a significant reduction in local drug prices in exchange for granting the pharmaceutical giant a tax exemption.

Under this agreement, which follows a similar deal announced last month with the American giant Pfizer, AstraZeneca will offer prices adhering to the “most favored nation” rule, which links prices in the United States to the lowest prices in other wealthy countries, for the Medicaid program aimed at low-income Americans.

Officials added that the British pharmaceutical company agreed to participate in an online platform called “TrumpRx,” allowing consumers to purchase certain drugs directly at discounted prices, according to Agence France-Presse.

Mohamed Az, the Trump-appointed head of Medicaid and Medicare services, said AstraZeneca will also provide significantly discounted drugs for lung diseases.

In return, Trump administration officials agreed to postpone new tariffs on AstraZeneca for three years. The company had previously announced plans to invest $50 billion in the US in response to imminent tariff threats.

AstraZeneca CEO Pascal Soriot, who appeared with Trump, Az, and other officials at a White House event on Friday evening, said, “Most of our products are made locally, but we need to move the remaining part to this country.”

This agreement follows a deal with Pfizer on September 30, in which the US administration granted the company a three-year tariff exemption in exchange for voluntarily lowering drug prices in the United States.

High drug prices have sparked anger in the US, leading to many legislative and administrative measures whose impact is hard to determine. The White House announcement regarding Pfizer did not include all drugs expected to have price reductions. An administration fact sheet listed only three drugs, excluding any of Pfizer’s best-selling products in the US.

Shares of Pfizer and other pharmaceutical companies rose after the September 30 announcement, indicating the measures are not seen as a significant burden on these companies’ profits. CFR research analyst Sil Hardy said, “From the company’s perspective, there is a clearer vision of the future,” adding, “They know they will not face tariffs for three years.”

Hardy considered it premature to determine the broad impact of the Trump administration on drug prices. Part of this will be decided through negotiations in November to price 15 major drugs under legislation signed by former President Joe Biden in 2022.