Pfizer-Trump deal: What it means for drug prices and pharma giants in US

Pfizer has pledged to make some medicines available at lower prices for the Medicaid programme and in return gained relief from immediate import tariffs

For months, the global pharmaceutical industry has been on edge, preparing for a showdown with Washington. President Donald Trump’s tariff threats, angry tweets, and public tirades over America’s soaring drug prices sent jitters through Wall Street and pharma boardrooms alike. The uncertainty wiped billions off pharma valuations and rattled global supply chains.

 

In a rare moment of calm, Pfizer struck a deal with the US government that has brought temporary relief to the sector.

 

On September 30, Pfizer reached a public agreement with the White House. Under this deal, the company pledged to make certain medicines available at lower prices for US government programmes like Medicaid and expand direct-to-patient sales for some drugs. In exchange, Pfizer secured relief from immediate import tariffs and a multi-year pause on future tariff threats. The deal was part of a broader White House effort to encourage drugmakers to cut prices and invest more in US-based manufacturing.

 

Why Pfizer’s deal with the US government matters 

The agreement is significant because it reduces the immediate political risk looming over the US pharmaceutical sector. Trump had threatened steep tariffs — as high as 100–200 per cent — on imported drugs unless drugmakers made binding price concessions.

 

The White House had formally asked 17 large pharmaceutical companies for such commitments in July. Markets interpreted Pfizer’s move as a signal that the administration might now avoid broader punitive steps that could disrupt supply chains and hurt industry revenue. According to the Financial Times, this news lifted investor sentiment across the pharmaceutical sector.

What Pfizer has agreed to and what it gets in return 

While symbolically important, the deal’s financial impact is limited. Pfizer agreed to price concessions under the “most favoured nation” clause for medicines supplied through Medicaid, and to expand direct-to-consumer drug access.

 

In return, the company avoids near-term import tariffs and secures a multi-year freeze on further tariff threats. Wall Street analysts estimate that the price cuts apply to only about 5 per cent of Pfizer’s US revenue — a manageable concession in exchange for policy certainty.  ALSO READ | Indian pharma firms likely to dodge immediate impact of Trump's tariff

How other drugmakers responded to Trump’s tariff threats 

Most major pharmaceutical firms have announced major investments to boost their US presence. Pfizer pledged $70 billion, while Roche and AstraZeneca committed around $50 billion each, and Eli Lilly $27 billion.

 

Trump said companies investing in US production would be exempt from tariffs. Some companies have also changed pricing abroad. For example, Eli Lilly reportedly increased the UK price of its weight-loss drug Mounjaro by up to 170% for private patients.

Pfizer’s top-selling drugs and scale in the US market 

Pfizer remains one of the world’s largest pharmaceutical firms. In 2024, it posted global revenues of $63.6 billion.

 

Its top-selling products last year included:

 

• Eliquis (apixaban), an anticoagulant — ~$7.4 billion
• Prevnar family (pneumococcal vaccines) — ~$6.4 billion
• Paxlovid, the oral Covid-19 antiviral — ~$5.7 billion

 

Pfizer also markets oncology drugs like Ibrance, and newer launches like Vyndaqel (for cardiac issues). It maintains a robust R&D and manufacturing presence across the United States.

What Pfizer’s India operations look like 

In India, Pfizer operates through Pfizer Limited (a listed entity) and other affiliates. It sells a broad range of branded prescription medicines across multiple therapeutic areas and runs local manufacturing facilities.

 

Its Indian operations include vaccines, hospital-use medications, and primary-care brands.

Pfizer’s top products and revenues in India 

Pfizer India reports annual revenues of over ₹2,000 crore. It sells over 150 products across 16 therapeutic areas.

 

Key Indian brands include:

• Prevenar 13 (pneumococcal vaccine)
• Enbrel, Becosules, Corex-DX, Dolonex, Gelusil, and Folvite
• Pfizer also runs a major manufacturing plant in Goa, which supplies a significant portion of its domestic production.

Pfizer also runs a major manufacturing plant in Goa, which supplies a significant portion of its domestic production.