Deal Overview - President Trump is expected to announce a deal with drugmakers Eli Lilly and Novo Nordisk to lower the price of their weight loss drugs [1] - The deal involves limited Medicare coverage in exchange for lower drug prices [1] Companies Involved - Eli Lilly and Novo Nordisk are the drugmakers involved in the deal [1] Potential Impact - The deal aims to lower the price of weight loss drugs [1] - Limited Medicare coverage is part of the agreement [1]

Pharmaceutical Industry & Policy - The Pfizer and White House drug pricing deal warrants careful examination [1] - The deal's declared victory status requires scrutiny [1]

GLP-1 Drugs & Market Dynamics - GLP-1 drugs are considered potential "miracle drugs" with numerous applications, but their high cost is a significant concern [1] - The market is actively discussing and evaluating GLP-1s, with much more data expected to be released [2] Medicare & Affordability - There are ongoing considerations regarding making GLP-1s available for weight loss under Medicare, weighing the upfront costs against potential long-term health benefits [1] - Affordability remains a key question: "Can we afford it or can we afford not to do it?" [1] Drug Price Negotiation & IRA - One GLP-1 drug is slated for price negotiation in 2027 under the Inflation Reduction Act (IRA) [3] - The IRA aims to allow the government to negotiate drug prices for drugs that have been patented long enough for companies to recoup their investment [4] Government Initiatives & Pricing - The administration aims to ensure that 95% of all drugs in America will be at pricing that reflects fair value by the end of the president's term [7] - The team is deeply involved in understanding drug pricing mechanisms to ensure prices align with the value provided [6]

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]

Morning, Frank. Well, we haven't heard many companies making concrete promises. Most are telling us that they're in talks with the administration and that they don't have anything to share just yet.Now, we have heard a number of CEOs like Lily's CEO Dave Ricks and Merks Rob Davis say that they agree with President Trump that other countries should pay more for drugs, but we haven't seen many actions to actually raise prices elsewhere. Now, Lily and Bristol are making a few tweaks, but nothing groundbreaking ...

Industry Trend - Bristol has diverged from some competitors by adopting the White House's drug pricing proposals [1]

Company Strategy - Cost Plus Drugs launched in 2022 to increase transparency in drug pricing [1] - The company aims to lower drug costs for the average consumer [1] - The company intends to disrupt the traditional pharmacy industry [1]

Regulatory Affairs - FDA proposes faster drug reviews in exchange for lower US prices [1]