Il European pharmaceutical sector wakes up in rally after weeks of pressure related to the risk of tariffs and price regulations in the United States. The change of pace was triggered by theagreement reached between Pfizer and the Trump administration: three years of immunity from the surcharges threatened by the White House, in exchange of discounts on drugs and large investments in American production.
Trump announced that Pfizer will apply the principle of “most-favored-nation price“, equating the price lists to the lowest ones practiced in developed countries, and will launch the “TrumpRx” portal, which will allow citizens to purchase medicines online at discounts of up to 50%.
Big Pharma: Immediate rally on the stock markets
The effect was lightning fast and Pharmaceutical stocks are rallying todayOn the Zurich Stock Exchange, Roche jumped 6% and Novartis 4,63%. At the Milan Stock Exchange, Diasorin (+2,07%), Recordati (+1,45%), and Amplifon (+2,6%) led the way. The EuroStoxx Healthcare index rose 2,7%, also driven by gains by Sanofi (+4,24%), AstraZeneca (+6,3%), and Novo Nordisk (+3,26%).
The market, analysts explain, isn't pricing in price declines so much as increased visibility and stability for the sector. "A price cap doesn't equate to a cut in profits," Equita observes, emphasizing how the reduction in uncertainty is benefiting stocks.
Investments and new negotiations
Pfizer didn't just cut costs. The group led by Albert Bourla will invest over 70 billion of dollars in research, development, and manufacturing in the United States over the next few years.
Meanwhile Trump confirmed that other pharmaceutical giants are already "on the waiting list" to sign similar agreements, while Roche and Novartis they reiterated the willingness to collaborate with Washington to "strengthen American manufacturing and improve drug accessibility." Roche also announced a five-year, $50 billion investment plan.
If the agreement reduces regulatory uncertainty, However, there are still some open issues Such as the true extent of the discounts, the time it takes for patients to access them, and the risk that the measures will remain limited to a limited number of people. Experts point out that consumers without health insurance could still face high costs. For now, the market seems to be putting aside concerns about tariffs (confirmed at 15% for European products) and rediscovering the sector's potential.
