Azar, who served as the head of Eli Lilly's US operations for five years until he stepped down from the position in January, previously served as deputy secretary of HHS under the George W. Bush administration.
Trump, who is in the Philippines on a diplomatic trip, announced his intention to nominate Azar on Twitter by saying he would "be a star for better healthcare and lower drug prices". He would also help the Trump administration to dismantle Obamacare and crack down on drug prices.
Alex Azar appears to clearly be an establishment choice with his past experience including serving as General Counsel for HHS before becoming the Deputy Secretary under President George W. Bush.
AHA CEO Rick Pollack said he is confident that Azar's experience in business, healthcare and medicine makes him a good pick.
Azar, though a spokesman, declined to comment.
Azar also drew praise from PhRMA, the largest pharmaceutical industry trade group and America's Health Insurance Plans, the key lobbyist for the insurer industry.
Mr. Azar is a former executive for pharma giant Eli Lilly, and at a conference this past May, he argued the rapid rise in the cost of prescription drugs is due to changes in the insurance industry. In May, he told Fox News that, in his opinion, Obamacare was "circling the drain" and should be stopped.
"There's actually fairly few levers that the government can do at this point to stabilize this broken system", said Azar. The potential loss of Medicaid expansion dollars has been a sticking point for some Republican lawmakers from Medicaid expansion states who have welcomed the increase in federal dollars. "The Senate health committee will promptly schedule a hearing on his nomination".
"We're encouraged by the fact that Mr. Azar has experience creating the Office of the National Coordinator for Health IT, he was there at the inception of ONC", said Tom Leary, vice president for government relations at HIMSS.
Other Democrats were more cautious in their response to Trump's announcement, with Senator Chuck Schumer calling for the health agency to turn over a new leaf with Azar.
Trump's nomination of Azaro has been met with some scrutiny.
Azar's nomination must be approved by the U.S. Senate, which is controlled by Trump's fellow Republicans.