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The Trump administration is reportedly easing requirements for large pharmaceutical companies to fulfill some of their investment commitments under the “most favored nation” deals struck with the White House.
According to a report by Endpoints News, citing a framework for agreements between the U.S. Department of Commerce and the large pharmaceutical companies, the exact amounts these drugmakers will have to invest in the United States are still being negotiated.
The report added that at least one of these companies expects to fulfill the multi-billion-dollar investment pledge in full by Jan. 1, 2029.
The U.S. government and the companies in question are said to agree in “good faith” on the amount they need to invest in the United States to manufacture and consume the pharmaceutical products and ingredients consumed in the country.
The report also states that the pharma companies signing these deals would be prevented from stockpiling drug inventory in the U.S. to get around tariffs.
The U.S. can also impose tariffs on new drugs that companies acquire through future deals, the report added.
AstraZeneca Plc. (AZN), Pfizer Inc. (PFE), Novo Nordisk AS (NVO), and Eli Lilly & Co. (LLY) are among the major pharmaceutical companies that have made commitments to invest in the U.S.
AstraZeneca announced plans in July to invest up to $50 billion in the U.S. by 2030, in support of its ambition to reach $80 billion in revenue.
Pfizer announced plans to invest up to $70 billion dedicated to U.S. research, development, and capital projects in the country. Novo Nordisk and Eli Lilly have committed to invest $10 billion and $27 billion, respectively.
Meanwhile, U.S. equities declined in Thursday’s midday trade. At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, was down by 0.01%, the Invesco QQQ Trust ETF (QQQ) fell 0.22%, while the SPDR Dow Jones Industrial Average ETF Trust (DIA) declined 0.07%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bearish’ territory.
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