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Pfizer Soars on Medicaid Price Cut Deal, Stocks Surge

10/5/2025

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Summary

Story summary

Pfizer's stock rose after agreeing to cut Medicaid drug prices; the deal includes a three-year reprieve on import tariffs and a $70 billion U.S. investment.
The arrangement eases pharma pressures amid tariff announcements by President Trump.
Merck rose 14%. Pfizer had the largest weekly gain since 1980. The life sciences index increased 15%.

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Story summary

Pfizer's stock rose after agreeing to cut Medicaid drug prices; the deal includes a three-year reprieve on import tariffs and a $70 billion U.S. investment.
The arrangement eases pharma pressures amid tariff announcements by President Trump.
Merck rose 14%. Pfizer had the largest weekly gain since 1980. The life sciences index increased 15%.