Import taxes on medicines and treatments will remain at 0% for three years, the UK Government said.
The Trump administration said the deal will lead to further investment by UK drugs firms in the US and create more jobs.
The Trump administration said the deal will lead to further investment by UK drugs firms in the US and create more jobs (Leon Neal/PA)
It comes after warnings that US pharma firms will shut down their sites in the UK if the NHS does not pay more for drugs.
The Government has agreed to increase the upper threshold for which it can buy new medicines by 25%.
Science and Technology Secretary Liz Kendall said: “This vital deal will ensure UK patients get the cutting-edge medicines they need sooner, and our world-leading UK firms keep developing the treatments that can change lives.”