AstraZeneca and the US government reached a deal on US drug pricing, delaying Section 232 tariffs for three years. Astra plans to sell more chronic disease drugs directly to consumers and invest $50 billion in the US by 2030. The agreement includes discounts for Medicaid and harmonized prices for new medicines in developed nations.

Morningstar maintains a fair value estimate for Astra at £124 per ordinary share and $81 per US ADR. The deal is not expected to impact near-term earnings significantly, focusing on new drug launches’ harmonized prices across developed countries. Potential future sales could be affected if some countries refuse to reimburse new medicines at higher prices.

Read more at Morningstar: Drug Pricing Agreement Mitigates Threats of Tariffs and Price Controls