Pfizer inks deal with govt to lower drug costs in USA, invest $70 billion

The USA’s Pfizer (NYSE: PFE) has struck a deal with the Trump administration to lower its US medicine prices and invest an additional $70 billion in onshore manufacturing in exchange for shelter from tariffs.

The pharma giant said on Tuesday, in a what observers called a “landmark deal,” it has agreed to adjust the prices of drugs currently on the market and newly launched medicines in the US to be comparable to those in other developed countries in response to points covered in a letter from President Donald Trump in July. Pfizer's competitors are expected to follow suit after the Trump administration pushed companies for months to lower prices.

Pfizer’s shares rose 5.2% to $25.09, but the stock was down 5.5% this year, largely as a result of reduction in sales of its once mega revenue earning COVID-19 vaccine, and the company is facing a significant “patent cliff.”