Core Viewpoint - Pfizer's CEO Albert Bourla indicated that uncertainty surrounding President Trump's pharmaceutical tariffs is hindering the company's willingness to invest further in U.S. manufacturing and R&D [1][2]. Group 1: Investment and Tariff Uncertainty - Bourla emphasized that the absence of tariffs would lead to significant investments in the U.S. for both R&D and manufacturing [3]. - The company is currently adopting a cautious approach to cost management and investments due to the prevailing uncertainty [3]. - Pfizer's guidance for the year does not account for potential impacts from future tariffs and trade policy changes, which remain unpredictable [6]. Group 2: Tax Environment and Incentives - The establishment of a global minimum tax of around 15% has altered the tax landscape, but Bourla noted that it has not made the U.S. significantly more attractive for investment without additional incentives or clarity on tariffs [4]. - Bourla mentioned that a reduction in the current tax regime for locally produced goods would serve as a strong incentive for U.S. manufacturing [5]. Group 3: Financial Guidance and Costs - Despite the uncertainties, Pfizer did not revise its full-year outlook, although it acknowledged $150 million in costs related to existing tariffs in its earnings release [6][7]. - The CFO stated that the current guidance reflects these tariff costs while the company continues to trend towards the top end of its guidance range [7].

Core Viewpoint - AbbVie's Q1 results showed strong revenue growth of 8.4% year over year, driven by autoimmune disease drugs Skyrizi and Rinvoq, and the company raised its full-year earnings guidance, but potential tariff issues and international reference pricing pose significant risks to its future performance [1][4][5]. Group 1: Financial Performance - AbbVie's revenue increased by 8.4% year over year, primarily due to the success of Skyrizi and Rinvoq [1]. - The company exceeded Wall Street's expectations for both revenue and earnings in Q1 [1]. - AbbVie raised its full-year earnings guidance, although it included a disclaimer regarding potential trade policy changes [4]. Group 2: Tariff Concerns - Current tariffs have not impacted AbbVie, as pharmaceuticals were exempt from the Trump administration's tariffs [2]. - President Trump announced plans for a major tariff on pharmaceuticals, aiming to encourage domestic manufacturing [3]. - CEO Robert Michael indicated that any tariff impacts would likely align with those faced by peers, and AbbVie would not pass on price increases to customers but may seek cost efficiencies [4][9]. Group 3: International Reference Pricing - The Trump administration is considering implementing international reference pricing, which could significantly affect U.S. drug prices and pose an "existential threat" to the industry [5][6]. - Michael expressed concerns about the potential negative impact of international reference pricing on U.S. healthcare and innovation during the Q1 earnings call [7]. - Previous attempts to implement such pricing were halted by federal courts, and any new efforts may face strong lobbying from the pharmaceutical industry [10].