Billions of pounds were added to the value of British and global pharmaceutical companies on Wednesday as investors welcomed the Trump administration’s latest plans on drug pricing and tariffs, The Times reports.
President Donald Trump’s announcement of a direct-to-consumer discounted drug website, called TrumpRx, alongside a pricing agreement with Pfizer that exempts the company from import tariffs for three years, sparked a major relief rally on stock markets. Analysts said the deal could serve as a “blueprint” for other multinational pharmaceutical companies after months of uncertainty.
Shares in AstraZeneca surged £12.54, or 11.2 per cent, to £124.36, reclaiming its position as Britain’s most valuable public company, while GSK rose 97p, or 6.2 per cent, to £16.72. European pharmaceutical stocks also gained, with Sanofi up 8.4 per cent, Roche 8.6 per cent, and Novartis 3.9 per cent.
The rally followed Trump’s White House meeting with Pfizer CEO Albert Bourla. Pfizer shares, which had already risen 6.8 per cent on Tuesday, gained another 7.1 per cent to $27.29 by mid-afternoon in New York. Analysts at Jefferies noted that TrumpRx is designed to bypass middlemen, or pharmacy benefit managers, potentially allowing companies to reduce prices on certain drugs without hurting margins.
Other chief executives are expected to reach similar agreements soon, with Trump indicating Eli Lilly is close to a deal. AstraZeneca recently announced it would sell diabetes and asthma drugs directly to cash-paying U.S. patients at a discount.
Speaking at a Bloomberg event in London on Wednesday, Dame Emma Walmsley, outgoing CEO of GSK, welcomed the initiative as “a step forward,” highlighting the importance of constructive dialogue between the government and industry. “You’ve seen the markets see that as well,” she said.
Since returning to the White House, Trump has repeatedly threatened tariffs and pushed for “most favoured nation” pricing to align U.S. drug costs more closely with other developed countries and encourage domestic manufacturing. Some companies, including Eli Lilly and Bristol Myers Squibb, have already begun aligning certain U.S. drug prices with U.K. levels, while lobbying for increased NHS spending.
Jefferies analysts suggested the administration’s interventions, though disruptive, could ultimately benefit the pharmaceutical industry. UBS analysts cautioned that the coming weeks may be “noisy,” but the initial proposals appear manageable for companies.
Several pharmaceutical firms, including GSK and AstraZeneca, have announced multibillion-dollar manufacturing commitments in the U.S., while AstraZeneca plans a direct listing on the New York Stock Exchange. Indivior, which delisted from London in July, said it would relocate its corporate domicile to the U.S., citing superior liquidity on Nasdaq.
The latest moves signal a shift in global pharmaceutical strategy, with U.S. policy directly influencing the valuations and operations of both domestic and international drugmakers.
