NEW YORK CITY (dpa-AFX) - Pfizer Inc. has reached an agreement with the Trump administration to avoid imposing broad tariffs on pharmaceuticals. President Donald Trump threatened to impose tariffs on Pfizer as early as this week, but the agreement gives the company a three-year reprieve.
Trump's long-standing complaint that Americans spend significantly more on medications than patients overseas is addressed by this action. Pfizer promised to introduce new treatments at parity and to provide comparable prices globally.
The business also pledged a $70 billion investment in U.S. manufacturing and research, as well as extensive Medicaid discounts.
The S&P 500 Pharmaceuticals Index gained almost 4% on the news, while Pfizer's shares increased 5.6 percent. The agreement, according to analysts, establishes a model for competitors like Merck and Eli Lilly, who are negotiating with Washington.
Frequently critical of Pfizer, Health Secretary Robert F. Kennedy Jr. commended CEO Albert Bourla for 'putting public health ahead of individual interests.'
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