Shares in drugmakers Pfizer (PFE), Eli Lilly (LLY), and Novo Nordisk (NVO) edged lower on Monday afternoon after CNBC’s Megan Cassella revealed that President Donald Trump is set to announce a “dramatic expansion” of his discounted drug program.
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According to the reporter, the American leader later today will disclose plans to ramp up discounted prescription drug offerings available on the TrumpRx.gov platform. The Trump administration launched the platform earlier in February as a direct-to-consumer website for Americans to find lists of drugmakers offering discounts on certain products.
Trump to Double Down on Discounted Drug Deals?
Since returning for his second term in January 2025, Trump has put renewed pressure on pharmaceutical companies to reduce prices for Americans. Last May, the president signed an executive order that issued a 30-day ultimatum for drugmakers to slash prices to “most favored nation” levels or equivalent to what other countries pay.
Since then, the administration has signed discounted drug arrangements — starting with Pfizer (PFE) — with several pharma companies in exchange for tariff exemption. Others include Eli Lilly (LLY), Novo Nordisk (NVO), AstraZeneca (AZN), Novartis (NVS), Sanofi (SNY), and GSK (GSK).
If the expansion includes existing companies that have entered such arrangements, it could put further pressure on sales, especially for Novo Nordisk. The Danish pharma giant earlier forecast a weaker sales outlook for 2026, in part due to drug price cuts.
Reports in late December suggested that Pfizer and other drugmakers planned price increases for at least 350 branded medications. In a statement issued at the time, Pfizer said the “modest increase” for some of its medications was critical to feed the development of new ones and tackle higher business costs.
Which Pharma Stock Is the Best Buy?
TipRanks’ Stock Comparison tool shows that Eli Lilly (LLY) offers the biggest upside of roughly 28%. This is based on an average price target of $1,262.85 that comes with a Strong Buy rating
