Shares of U.S. drugmakers rose after President Donald Trump said on Tuesday that Pfizer will cut the price of all prescription drugs in the Medicaid program for low-income Americans in exchange for tariff relief and added that he expects other drugmakers to follow suit.<\/p>\n
Trump referred to another announcement from a drugmaker next week and said that Eli Lilly has been “fantastic” in these negotiations.<\/p>\n
Investors and analysts said the announcements appear to be the beginning of the rebound for the sector.
\nWhile the “most favored nation” pricing and pharmaceutical tariffs have loomed as a concern for the sector for some time, today’s announcement appears to read positively, said BMO Capital Markets analyst Evan Seigerman.<\/p>\n
Shares of Pfizer, Eli Lilly, Merck, AbbVie and Bristol Myers Squibb were up between 2% and 7% at the close.<\/p>\n
Separately, FDA Commissioner Marty Makary also made comments at the White House event on the commissioner’s review voucher under which certain experimental therapies addressing a chronic public health need and meeting specific criteria could be reviewed in one to two months, rather than the standard 10 months.<\/p>\n
He is expected to announce five recipients of those vouchers.<\/p>\n
“We wouldn’t be surprised if we see an announcement of a (voucher) for orfoglipron alongside the Lilly-White House deal, which should be just around the corner,” said Bernstein analyst Courtney Breen.<\/p>\n
Trump sent letters to 17 leading drug companies in July, telling them to slash drug prices to match those paid overseas \u2014 a policy that the president called “most favored nation pricing,” or MFN. The drug companies were asked to respond with binding commitments by September 29.<\/p>\n
Pfizer is the first company to announce a deal, and will also be part of the White House’s new direct-to-consumer website for Americans to buy drugs, called TrumpRx, that will launch in 2026.<\/p>\n
“With the worst-case scenario now effectively off the table, this development serves as a meaningful clearing event for the sector,” said Daniel Barasa, portfolio manager at Gabelli Funds.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares of U.S. drugmakers rose after President Donald Trump said on Tuesday that Pfizer will cut the price of all prescription drugs in the Medicaid program for low-income Americans in exchange for tariff relief and added that he expects other drugmakers to follow suit. Trump referred to another announcement from a drugmaker next week and […]<\/p>\n","protected":false},"author":2,"featured_media":2050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[598],"class_list":{"0":"post-2049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-sitefansalaran-international-news","8":"tag-us-drugmakers-rise-after-trump-announces-pfizer-price-cuts"},"yoast_head":"\n