Trump Brokers Pfizer Deal: $70B Investment, Lower Drug Costs
U.S. President Donald Trump has brokered a significant deal with Pfizer, aiming to lower drug costs for patients while stimulating domestic production. The pharmaceutical giant has agreed to invest $70 billion in the U.S., primarily for expanding research, development, and manufacturing facilities.
The agreement, negotiated by Pfizer's CEO Albert Bourla, involves reshoring pharmaceutical production and supporting capital projects. In return, Pfizer will adjust its pricing policies, including 'Most Favored Nation' pricing for Medicaid and discounts on primary care treatments and specialty medicines.
This investment builds on Pfizer's existing commitment of over $83 billion to U.S. biotech innovation between 2018 and 2024. The company currently employs around 31,000 people across 13 manufacturing sites and seven research centers in the U.S. The $70 billion pledge is part of a broader deal that grants Pfizer a three-year reprieve from tariffs on branded pharmaceutical imports. A White House-backed platform, TrumpRx.gov, is expected to facilitate direct purchases of certain medicines at reduced rates.
Pfizer's $70 billion investment, facilitated by the Trump administration, is set to reinforce the U.S.'s role as a global hub for biopharmaceutical innovation. The deal, which includes pricing adjustments and a tariff reprieve, aims to lower drug costs for patients while boosting domestic production and job creation.
