Pfizer struck a price deal with the White House. Shares soared 6%

US pharmaceutical giant Pfizer has agreed to reduce prices for a number of prescription drugs in the US, as well as to localize production for the US market. In addition, the company confirmed plans to invest $70 billion in projects and research in the US. In return, Donald Trump gave Pfizer a three-year reprieve from 100 percent duties on imported drugs, and shares of the company and other pharmaceutical giants jumped by 2-6 percent.

Donald Trump said Pfizer will cut prices on a number of prescription drugs for all Americans, as well as medications under the state's Medicaid program for the poor, CBS News reports. The White House estimates that Pfizer's price cuts could affect up to 100 million patients. Trump emphasized that the cost of some drugs could be reduced by 50-100%, saving Americans and taxpayers hundreds of millions of dollars a year. The price cuts would take effect "immediately," the president added.

"Next, all new Pfizer drugs in the U.S. market will be sold at a reduced price - at the level of other countries that for years have paid much less," Trump said at a White House news conference. He said the drugs will be available for online purchase on a state website called TrumpRx, which he announced the launch of.

The president's statement came days after he announced on Wednesday that the U.S. would impose 100 percent duties on branded and patented drugs if they are not produced domestically. Pfizer, for its part, also agreed to move production of drugs for the U.S. market to the U.S. and confirmed in a press release that the company will spend an additional $70 billion on capital projects and research in the U.S. in the coming years. Against this backdrop, the pharma giant received a three-year duty holiday. Present alongside the president in the Oval Office, Pfizer CEO Albert Burla emphasized that it was the threat of duties that was the deciding factor. "The president is absolutely right - duties are the most powerful tool to change the behavior of companies. And they have certainly had an impact on us," he said.

Trump added that his administration is working with other companies to make "similar agreements" in the near future. Among those already in talks with the White House, he mentioned Eli Lilly, The Wall Street Journal noted.

At trading on September 30, Pfizer shares jumped 6.2% to $25.4. This became their maximum since August 25. Nevertheless, since the beginning of 2025, the market value of the company remains in the negative by 4.5%. For comparison: the main U.S. stock index S&P 500 for the same period, on the contrary, added about 13%.

In addition to Pfizer, shares of other pharmaceutical companies also rose. For example, the securities of the manufacturer of vaccines and cancer drugs Merck also jumped by more than 6%, shares of Bristol Myers Squibb, specializing in oncology and immunology, rose by 2.2%. Quotes of biotech company Amgen, which produces drugs for cancer and blood diseases, rose by 2.7%. Shares of British GSK (+3.7%), known for vaccines and drugs for respiratory diseases, and depositary receipts of French Sanofi (+2.3%), producing drugs for diabetes and rare diseases, also rose in price.

This article was AI-translated and verified by a human editor