Overview

• Pfizer will cut prices for several medicines sold to Medicaid and offer discounted purchases to patients via a government website, with reductions up to 85% and about 50% on average.
• Trump said all new Pfizer medicines introduced in the U.S. will launch at reduced prices aligned with the lowest levels in other developed markets.
• In exchange for these concessions, Pfizer secures a three-year exemption from the punitive tariffs the administration threatened to impose starting October 1.
• Pfizer also pledged $70 billion in additional U.S. investment as the administration uses tariff pressure to spur domestic production and voluntary price cuts.
• The list of covered drugs and the magnitude of consumer savings have not been disclosed, and reactions diverged as Pfizer shares rose about 5% while industry groups warned of supply and cost risks.