Pfizer’s CEO () Albert Bourla said the company has secured a three -year grace period compared to a deal that will reduce the prices of some drugs in the USA.
Pfizer will sell some average 50% discount drugs on a direct consumer sales site called Trumprx, an initiative that will allow Americans to buy prescriptions at prices negotiated by the government.
The deal seems to resolve two major threats faced by Pfizer. It would avoid more severe drug price policies and protect the company from future tariffs imposed by government investigation within “Section 232”, which assesses whether the cost of medicines represents a threat to national security.
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This is the latest example of Trump’s transactional nature to obtain tariff exemptions, which has unilaterally used trade policy to exercise power over multiple industries. Last week, Trump threatened 100% rates on the pharmaceutical industry.
Pfizer shares rose up to 5.6% after the announcement of tariff relief, reaching maximum in the session. The paper had fallen 10% in the year until the closing of this Monday (29), being behind the gain of 13% of the S&P 500 index.
Similar negotiations may be coming. Trade Secretary Howard Lutnick suggested that the government is holding the results of the National Security Investigation on Pharmaceutical Imports, which would pave the way for new tariffs while maintaining conversations with major drug manufacturers.
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Trump earned earlier that his government would imply 100% tariffs on brand drugs from Wednesday, unless the company built factories in the US. The president’s recent comments and his advisers indicate that the threat was a negotiation tactic to force companies to reduce prices.
Pfizer said it will offer generalized prices reductions to Americans registered in the Medicaid program, ensuring “more favored nation” prices in some of their medications, said Trump. He has repeatedly pressured companies to align US prices to those practiced in other countries.
As part of the agreement, Bourla also announced a $ 70 billion investment in research, development and domestic manufacturing in the coming years. Pfizer was one of the rare large pharmaceuticals to highlight the return of its US production facilities amid Trump pressure.
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“We now have the necessary certainty and stability on two critical fronts, tariffs and prices, which had suppressed industry ratings at historically low levels,” Bourla said in a statement.
Pfizer has not specified which medications will be available on Trumprx, but said most of its primary care drugs will be offered on the site. Among the company’s main medicines are the Eliquis Anticoagulant, the prevar pneumonia vaccine and a treatment for injection and tablet covid.
Large influential corporations and executives have been able to negotiate more favorable terms with the president, taking advantage of his personal relationships with him. Last month, Apple got exemption from tariffs on imported semiconductors after CEO Tim Cook Gift Trump with a statue and promise to increase investments in the US.
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A White House spokesman Kush Desai said that “while Democrats threaten to close the government to subsidize health to illegal immigrants, President Trump is using the federal government’s power to dramatically reduce drug prices for ordinary Americans.”
