Trump, Pfizer Strike Drug Price Deal; US Shutdown Looms
The US government, under President Donald Trump, has struck a deal with Pfizer to reduce drug prices under the Medicaid program. This agreement, which also involves tariff relief for Pfizer, has boosted shares of the pharmaceutical giant and other companies in the sector. Meanwhile, the Swiss stock market is seeing gains, with the SMI index up 0.58 percent. However, a government shutdown in the US may cause market uncertainty due to delayed economic data releases.
The deal between Trump and Pfizer is expected to lower drug prices for Medicaid beneficiaries. Pfizer, in exchange, gains strategic advantages through tariff relief on certain pharmaceutical imports. This agreement has positively impacted not only Pfizer's shares but also those of other pharmaceutical companies like Merck, Roche, and AstraZeneca, which have seen substantial stock gains. In Switzerland, the SMI index is up 0.58 percent at 11:00 AM, reaching 12,431.92 points. Medtech companies Straumann, Alcon, and Sonova are in demand, with their shares rising. The SLI is up 0.66 percent at 2,013.45, and the broad SPI is up 0.60 percent at 17,110.18 points. However, the government shutdown in the US may cause market uncertainty due to delayed economic data releases, including weekly initial jobless claims and the monthly employment report. Roche's rally has eased, trading higher but well below its daily high of an 8.6 percent gain the previous day. VAT is leading the winners in the SLI, up 6.7 percent, due to AI hype and recent billion-dollar investments in the sector. Other tech companies like AMS Osram, Comet, Inficon, and Logitech are also making significant gains. Rieter's shares are down more than a third due to a completed capital increase to finance the takeover of Barmag.
The Pfizer deal is expected to lower drug prices for Medicaid beneficiaries, benefiting patients and positively impacting pharmaceutical companies' shares. The Swiss stock market is seeing broad gains, with medtech and tech companies leading the way. However, the US government shutdown may cause market uncertainty due to delayed economic data releases.
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