Pfizer (PFE.N) and President Donald Trump said they had reached a deal under which the US-based drugmaker agreed to lower prescription drug prices in the Medicaid program to match those charged in other developed countries, in exchange for tariff relief.

Trump also said Pfizer would offer that most-favored-nation pricing on all new drugs launched in the US and indicated that other drugmakers would follow suit.

Shares of Pfizer rose more than 6% on Tuesday, and the news lifted Eli Lilly (LLY.N), Merck (MRK.N), Amgen (AMGN.O), AbbVie (ABBV.N), and GSK (GSK.L) shares as well, on investor relief that they would escape the worst of tariffs. European shares rose in early Wednesday trade.

US patients currently pay by far the most for prescription medicines, often nearly three times more than i

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