Why The TrumpRx Deal Is A Big Win For Pfizer

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Pfizer CEO Albert Bourla speaks shakes hands with U.S. President Donald Trump in a White House event on Tuesday. Getty Images President Trump and Pfizer announced a deal to cut drug pricing yeseterday. And it looks like the pharmaceutical giant got the better end of it. Signed at a showy news conference on Tuesday, the agreement gives CEO Albert Bourla and his company a reprieve from threatened tariffs and something of a truce from an Administration that he had been battling. It was a win so clear that the company’s shares have risen about 16% since its announcement. The price of that stability, from Pfizer’s perspective, isn’t very much– a fraction of its revenue and one that isn’t expected to have much impact on its bottom line. “It’s worth noting that Pfizer’s news release didn’t change a single financial metric or piece of guidance,” Carter Gould, a Cantor Fitzgerald analyst, wrote in a Tuesday report. With the agreement, the full details of which have not been disclosed, Pfizer agreed to significantly cut the prices on many of its primary care drugs for conditions like dermatitis, menopause symptoms and arthritis for Medicaid patients. It also agreed to abide by the President’s preferred “Most Favorite Nation” pricing on new products, meaning they won’t be sold at higher prices in the U.S. than in other wealthy countries. Crucially, the deal sets no caps on prices. One tentpole of the deal is Pfizer’s agreement to list many of these medicines on a planned “TrumpRx” website, which the administration claims will enable Americans to pay cash for drugs at discount prices. In exchange, it has agreed to exempt Pfizer from tariffs, which Trump had said last week would be at a rate of 100%, for the next three years. That could have placed a heavy…