Pfizer drug pricing deal ‘mostly performative,’ says BofA

The timing of the “deal” announced between the U.S. and Pfizer (PFE) on drug pricing “may have come as a surprise,” but the substance of it didn’t, in the opinion of BofA analyst Tim Anderson, whose view over the last weeks-to-months has been that the drug industry might well escape any real pain when negotiating on issues like “most favored nation” drug pricing. Press releases from the White House and from Pfizer “largely lack specifics, but both read as benign,” adds the analyst, who calls the agreement “a loose collection of measures that likely doesn’t cost Pfizer much, yet still provides the Administration with a political win.” The firm keeps a Neutral rating and $28 price target on Pfizer shares.