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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 7:58 AM

By Bhanvi Satija and Maggie Fick

LONDON (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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