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Next medicine deal after Pfizer? Analysts, shares point to AstraZeneca, Eli Lilly
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Next medicine deal after Pfizer? Analysts, shares point to AstraZeneca, Eli Lilly
Oct 10, 2025 7:31 AM

By Bhanvi Satija and Maggie Fick

LONDON, Oct 10 (Reuters) - Wall Street is looking to

U.S. drugmaker Eli Lilly ( LLY ) and Anglo-Swedish rival

AstraZeneca ( AZN ) as the potential next in line after Pfizer ( PFE )

struck a deal with Donald Trump's administration to

lower drug prices last week.

Reuters spoke to seven healthcare analysts and investors.

Four said Lilly could be next to make a deal, while three

pointed to AstraZeneca ( AZN ). Others mentioned Merck ( MRK ), AbbVie ( ABBV )

, Regeneron and Bristol-Myers Squibb ( BMY ).

Reuters could not independently confirm any such deals were

in the offing, but drugmakers have been jostling to get a deal

after Pfizer's ( PFE ) September 29 agreement that pledged lower prices

via Medicaid for relief on tariffs on imported medicines.

Lucy Coutts, a UK-based investment director at wealth

manager JM Finn, predicted that AstraZeneca ( AZN ) could be next after

it broke ground on a $4.5 billion plant in Virginia this week

and is planning a U.S. listing of its shares.

"I'd like to think it will be AstraZeneca ( AZN ) given revenues

from U.S., its investment in manufacturing and R&D in the US and

implementing a dual listing on NYSE," she said.

Lilly said it did not have specific details to share about

its discussions with the administration at this time.

AstraZeneca ( AZN ) did not immediately respond to a Reuters' request

for comment.

READING THE PHARMA SECTOR TEA LEAVES

Reading the tea leaves with President Trump, however, is not

for the faint-hearted. The Pfizer ( PFE ) deal caught many in the

industry unaware, though most firms have been looking to get

into his good books amid threats of tariffs.

The Pfizer ( PFE ) deal boosted pharma sector shares, with Eli Lilly ( LLY )

the biggest gainer since then and AstraZeneca ( AZN ) second. Denmark's

Novo Nordisk, Pfizer ( PFE ) itself and Novartis

lag.

Reuters reported last week that the U.S. government is

pursuing deals across as many as 30 industries - including

pharmaceuticals. According to two sources, pharma executives are

receiving near-daily calls from senior government officials.

Gareth Powell, head of healthcare at London-based investment

fund Polar Capital, said that an announcement from Lilly could

be in the works, followed by AstraZeneca ( AZN ).

Eli Lilly ( LLY ) said last month it will invest $5 billion to build

a manufacturing facility in Virginia, part of a $27 billion U.S.

expansion over the next five years.

Several other pharmaceutical giants - including AstraZeneca ( AZN ),

Pfizer ( PFE ), Novartis, and Johnson & Johnson ( JNJ ) - have announced

U.S. investments this year.

Lilly and AstraZeneca ( AZN ) were among the 17 leading drug

companies who received a letter from Trump in July telling them

to slash prices to match those paid overseas.

Powell said Trump was close to the chief executive officers

of Lilly, Pfizer ( PFE ) and Regeneron, all U.S. firms.

"If you notice those 17 letters that he sent to pharma, he

crossed out the typed up names for Lilly, Pfizer ( PFE ) and Regeneron,

and wrote it in pen their names in a sort of more friendly

manner," he said.

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