Pfizer Strikes Major Deal with Trump Over Drug Prices

In a significant move, Pfizer has reached a groundbreaking agreement with President Donald Trump to lower prescription drug prices within the U.S., particularly for Medicaid beneficiaries. The U.S.-based pharmaceutical giant has agreed to align its drug prices with those in other developed countries in exchange for tariff relief.

The deal has sent ripples across the healthcare sector, with both European and U.S. healthcare stocks witnessing a surge. Pfizer's agreement provides much-needed clarity to a beleaguered global pharmaceutical industry grappling with volatile conditions and political pressure over high drug prices.

A broader impact is anticipated as other drugmakers prepare to follow Pfizer's lead, while the U.S. government continues to press forward with tariffs on imported branded drugs, prompting companies to boost domestic manufacturing efforts and cut prices.

(With inputs from agencies.)