Key Stats for Pfizer Stock
- 1-day Price Change for Pfizer stock: 6.8%
- Current Share Price: $25.5
- 52-Week High: $30.4
- $PFE Stock Price Target: $28.9
What Happened?
Pfizer (PFE) stock jumped almost 7% on Tuesday after President Trump announced the company agreed to voluntarily cut U.S. drug prices in exchange for a three-year exemption from pharmaceutical-specific tariffs.
The deal links Pfizer’s medications to cheaper prices abroad through what Trump calls “most-favored-nation” pricing.
Under the agreement, Pfizer will sell existing drugs to Medicaid patients at the lowest price offered in other developed nations.
It will also guarantee the same pricing on new drugs for Medicare, Medicaid, and commercial payers. Trump said that some of Pfizer’s most popular medications will be discounted by 50% to 100% on a new website called TrumpRx.gov.
Pfizer plans to invest $70 billion to bring drug manufacturing and research facilities back to the United States as part of the deal. The tariff exemption only applies if the company expands its domestic production.
CEO Albert Bourla said Pfizer satisfied all four requests from Trump’s letter, which gave drugmakers until Monday to take steps to lower prices. “The big winner clearly will be the American patients,” Bourla said, though he added American innovation and the economy would also benefit.
The discounted drugs include treatments for migraines, rheumatoid arthritis, menopause, and eczema.
For example, Duavee for menopause symptoms will sell for as little as $30, an 85% discount. Eucrisa for eczema drops to $162, an 80% reduction. These aren’t major revenue drivers for Pfizer, but the optics matter politically.
Trump made clear this is just the first deal, saying he’s working with other drugmakers to secure similar agreements. “If we don’t make a deal, we’re going to tariff them,” he warned. The White House confirmed that Eli Lilly is already in negotiations.
The timing matters because Trump threatened to impose 100% tariffs on branded or patented pharmaceuticals imported into the country starting October 1. That threat now hangs over the entire industry unless companies cut deals similar to Pfizer’s.
See analysts’ growth forecasts and price targets for Pfizer stock (It’s free!) >>>
What the Market Is Telling Us About PFE Stock
PFE stock is rallying on this news, indicating that investors view the deal as removing a significant source of uncertainty.
BMO Capital Markets analyst Evan Seigerman called it positive for both Pfizer and the broader pharmaceutical sector because it “adds certainty and shifts POTUS policies potentially away from Pharma tariffs.”
On the second quarter earnings call, Bourla acknowledged active discussions with the administration at the highest levels. He said the conversations have been “extremely productive” and that both sides understand each other’s positions.
The healthcare heavyweight is trying to balance making medicines affordable while maintaining the U.S. biotech industry’s competitiveness against China.
Pfizer’s second-quarter results were solid, with revenue rising 10% to $14.7 billion, exceeding expectations. It raised full-year adjusted EPS guidance by $0.10 to a range of $2.90 to $3.10, absorbing a $0.20 charge from the 3SBio licensing deal. Without that deal, guidance would have increased by $0.30.
For investors, PFE stock also offers a 6% dividend yield and provides exposure to a pipeline that includes promising oncology assets and vaccines.
The drug pricing deal mitigates some political risk, although questions remain about how other companies will respond and whether similar pressure will continue in 2026.
Bourla warned that China is rapidly advancing in biotech, filing more patents than the U.S. this year and leading the world in clinical trials.
Balancing affordability with competitiveness against China is the real challenge ahead.
Wall Street Analysts Are Bullish on These 5 Undervalued Compounders With Market-Beating Potential
TIKR just released a new free report on 5 compounders that appear undervalued, have beaten the market in the past, and could continue to outperform on a 1-5 year timeline based on analysts’ estimates.
Inside, you’ll get a breakdown of 5 high-quality businesses with:
- Strong revenue growth and durable competitive advantages
- Attractive valuations based on forward earnings and expected earnings growth
- Long-term upside potential backed by analyst forecasts and TIKR’s valuation models
These are the kinds of stocks that can deliver massive long-term returns, especially if you catch them while they’re still trading at a discount.
Whether you’re a long-term investor or just looking for great businesses trading below fair value, this report will help you zero in on high-upside opportunities.
Click here to sign up for TIKR and get our full report on 5 undervalued compounders completely free.
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
