Company Deal & Stock Impact - Pfizer reached a drug pricing deal with the Trump administration, agreeing to lower prices in Medicaid and sell drugs through a new website called Trump RX [1][2][3] - Pfizer's stock increased by 5% following the announcement of the deal [1] - The deal provides Pfizer with a three-year exemption from tariffs, contingent on increased investment in the US [3] - The agreement removes uncertainty around most favored nations drug pricing and tariffs, which had been weighing on the sector [6][7] Deal Specifics & Limitations - The drugs being sold directly to consumers are primarily older drugs that do not generate significant revenue for Pfizer [4][5][8] - Medicaid already receives the lowest drug prices, suggesting Pfizer is not conceding a substantial amount [5] - Pfizer will offer most of the drugs in their primary care portfolio through the direct-to-consumer portal, including drugs for conditions like eczema, post-menopause, bladder issues, and rheumatoid arthritis [8] - The effectiveness of the direct-to-consumer platform is questionable, as many insured individuals may still prefer using their insurance for lower prices [9][10] Executive Commentary - Pfizer's CEO, Albert Borla, stated that the deal satisfies all of President Trump's requests and has previously praised Trump's role in the search for a COVID vaccine [6]