The agreement includes a pricing model that aims to make prescription drugs more affordable for low-income earners, including those covered by the state health insurance Medicaid.
At the press conference in the Oval Office, in addition to US President Donald Trump, Astra Zeneca's CEO Pascal Soriot was also present.
The pharmaceutical company, which is based in the United Kingdom, will also invest $50 billion in its drug manufacturing, research and development in the US.
Trump calls the agreement a "tremendous victory for American patients and for the country".
The agreement comes after competitor Pfizer entered into a similar price agreement with the Trump administration to lower prices on several drugs in the US to avoid drug tariffs for three years.
