Pharmaceutical Shares Surge As Trump Strikes Pfizer Pricing Deal

Billions of pounds were added to the market value of British and global pharmaceutical companies on Wednesday following a major relief rally prompted by the Trump administration’s latest stance on tariff and pricing policies for the sector. President Donald Trump has announced the launch of a new direct to consumer discounted drug website, TrumpRx, along with a significant pricing agreement with US drug behemoth Pfizer. This pact will see import tariffs avoided for three years, offering the industry a period of certainty after months of policy uncertainty.

AstraZeneca shares soared by £12.54, an increase of 11.2 per cent to £124.36, restoring its position as Britain’s most valuable listed business. Shares in GSK climbed 97p or 6.2 per cent to £16.72. The rally extended across Europe, with Sanofi up 8.4 per cent, Roche rising 8.6 per cent, and Novartis gaining 3.9 per cent. As the first to sign a deal after the Trump administration publicly pressured pharmaceutical giants to reduce the cost of prescriptions, Pfizer saw its shares climb by 7.1 per cent to $27.29 in New York trading. Market analysts described the move as a potential blueprint for other multinationals wary of looming US tariffs on imported medicines.

Jefferies analysts noted TrumpRx appears intended to cut out the mark-ups traditionally added by pharmacy benefit managers, offering a route for companies to lower prices on select medicines without a direct impact on their profit margins. Industry leaders indicate further agreements are in the pipeline, with Eli Lilly reportedly close to striking its own deal. AstraZeneca has already announced plans to sell key diabetes and asthma drugs directly to US patients buying with cash at reduced rates.

Dame Emma Walmsley, outgoing GSK chief executive, described the latest developments as constructive, telling a London audience the dialogue between US government and industry was positive. She reaffirmed the critical importance of the United States as the prime market for global pharmaceuticals and said GSK is actively involved in similar discussions about drug pricing and access.

Since returning to office, Trump has consistently applied pressure to the pharmaceutical sector, combining threats of high tariffs and most favoured nation pricing with demands for lower prices in America. These policy moves aim to drive domestic manufacturing and force prices down to levels seen in other developed nations. In response, some companies like Eli Lilly and Bristol Myers Squibb have moved to align American drug prices with those in the UK, while major US-based pharmaceutical groups intensify lobbying efforts for higher NHS medicine spending.

UBS analysts warned that while the current landscape appears manageable for the industry, there remains considerable uncertainty around implementation and real impact. Trump last week imposed a 100 per cent tariff on imported branded pharmaceuticals, but exempted firms investing in US production. Multinationals including GSK and AstraZeneca have since unveiled substantial investment and manufacturing initiatives on American soil. Meanwhile, AstraZeneca plans to seek a direct listing on the New York Stock Exchange, while keeping its headquarters and tax base in Britain. Indivior has also confirmed plans to shift its corporate domicile to the US after delisting from London, citing the deeper market liquidity available on Nasdaq.