04:14 PM EDT, 09/30/2025 (MT Newswires) -- Pfizer ( PFE ) said Tuesday that it reached a deal with the Trump administration to lower drug prices and that it plans to invest an additional $70 billion in the US.

US President Donald Trump sent letters to pharmaceutical manufacturers, including Pfizer ( PFE ), in July, requiring the companies to cut prescription drug prices in the US to the lowest price level offered in other developed countries.

Pfizer ( PFE ) didn't disclose terms of the agreement, but said it won't face pharmaceutical-specific tariffs for three years, as long as it further invests in US manufacturing.

The company said that the planned $70 billion investment in US research, development and capital projects over the next few years follows more than $83 billion invested in American biotech from 2018 through 2024.

"By working closely with the (Trump) administration, we are lowering costs for patients and enabling greater investment in the US biopharmaceutical ecosystem," Pfizer ( PFE ) Chief Executive Albert Bourla said in a statement. "We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry's valuations to historic lows,"

Pfizer's ( PFE ) shares closed 6.8% higher on Tuesday. The stock is down 4% so far this year.

Last week, Trump said the US would impose a 100% tariff on any branded or patented pharmaceutical product, effective Wednesday, unless companies build their pharmaceutical manufacturing plants in the country.

Pfizer ( PFE ) said Tuesday it will participate in the TrumpRx.gov platform, which will allow US patients to buy its medicines at a "significant" discount. The company will offer a majority of its primary care treatments and certain specialty branded drugs at savings as high as 85% and on average 50%, according to the statement.

Separately, the White House said Tuesday that the deal with Pfizer ( PFE ) marks the first one with a major pharmaceutical company under the Trump administration's "most-favored-nation," or MFN, pricing policy.

"The agreement ensures foreign nations can no longer use price controls to freeride on American innovation by guaranteeing MFN prices on all new innovative medicines Pfizer ( PFE ) brings to market," the White House said in a statement.

Last week, Pfizer ( PFE ) said it agreed to acquire weight-loss drug developer Metsera ( MTSR ) in a deal carrying an enterprise valuation of about $4.9 billion. In August, Pfizer ( PFE ) raised its full-year earnings outlook as it recorded stronger-than-expected second-quarter results, buoyed by double-digit revenue growth in primary care and oncology segments.

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