TrumpRx Reshapes Pharmaceutical Pricing as Pfizer Signs On

A new government-run drug purchasing website is set to change how Americans access prescription medications, and Pfizer became the first major pharmaceutical company to join the platform on Tuesday. The TrumpRx.gov agreement eliminates middlemen from the drug supply chain while establishing international price matching across developed countries. Pfizer stock responded with a 6.8% gain, though shares remain 13.3% below year-ago levels at the time of writing.

Also Read: Saudi Arabia Buys EA Games in Kushner-Led $55B Takeover

Also Read: Saudi Arabia Buys EA Games in Kushner-Led $55B Takeover## Pfizer (PFE) Stock Price Gains as TrumpRx Deal Cuts Drug Prices

Source: KLLC### Direct-to-Consumer Model Bypasses Traditional Distribution

The rally came after the company agreed to match U.S. medication costs with those in other developed countries. Pfizer will also participate in TrumpRx.gov, which is fundamentally a government platform that will open in early 2026 and will remove pharmacy benefit managers out of the entire supply chain.

The company will discount primary care treatments by an average of 50 percent and will cut even certain drugs by up to 85 percent of their list prices. The site will not sell medications but instead will refer consumers to the direct channels of manufacturers as per the top officials of the administration.

Albert Bourla, the CEO of Pfizer, stated:

“We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows.”

“We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows.”### Manufacturing Commitments and Industry Impact

The company committed $70 billion in additional U.S. research and development investment over the next few years. In exchange, the administration granted Pfizer a three-year grace period on tariffs that were threatening 100% rates on pharmaceutical imports, which the administration had scheduled to impose just one day after Tuesday’s announcement.

Other pharmaceutical companies rallied alongside Pfizer. Merck shares climbed 6.8%, Eli Lilly gained 5%, and Johnson & Johnson rose 2%, showing that investors see this as a positive precedent for the broader sector right now.

Trump said at a news conference:

“The United States is done subsidizing the health care of the rest of the world. By taking this bold step, we’re ending the era of global price gouging at the expense of American families.”

“The United States is done subsidizing the health care of the rest of the world. By taking this bold step, we’re ending the era of global price gouging at the expense of American families.”### Most Favored Nation Pricing Framework

The agreement centers on “Most Favored Nation” pricing, and this framework compares net medication costs—after discounts and rebates—with the lowest rates in Canada, France, Germany, Italy, Japan, the United Kingdom, Switzerland, and Denmark. Pfizer will offer these matched rates to Medicaid across multiple essential markets in early 2026, establishing a new pricing standard.

Also Read: SpaceX Launch Today on Falcon 9 Rocket: Can I Buy SpaceX Stock?

**Also Read: SpaceX Launch Today on Falcon 9 Rocket: Can I Buy SpaceX Stock?**Bourla also stated:

“We’ve established a balanced global pricing approach that continues to recognize the value of innovation while ensuring prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations.”

**“We’ve established a balanced global pricing approach that continues to recognize the value of innovation while ensuring prices in the U.S. and other developed countries are both reasonable and sustainable, maintaining the strength of the U.S. market alongside other developed nations.”**Senior administration officials said several manufacturers have already negotiated deals, while others are negotiating and more companies are waiting to start discussions. The stock response shows investors view regulatory clarity as positive, even as some analysts debate whether the TrumpRx platform will really cut out-of-pocket costs for insured patients at this point.