President Donald Trump announced a deal with Pfizer to lower Medicaid drug prices, linking U.S. prices to cheaper ones abroad. Pfizer agreed to sell existing drugs to Medicaid patients at the lowest price offered in other developed nations and guarantee the same pricing for new drugs. Shares of Pfizer rose over 4% after the announcement.

Pfizer will offer popular medications at discounts of 50% to 100% online through TrumpRx.gov. The company plans to invest $70 billion in domestic drug manufacturing and research facilities. Trump is working with other drugmakers for similar agreements, with Eli Lilly in negotiations for the next deal. Pfizer and 16 other drugmakers face Trump’s deadline to lower drug prices.

Pfizer will offer discounts of up to 85% on primary care treatments and certain specialty branded drugs. Medicines for migraines, rheumatoid arthritis, menopause, and dermatitis will be available at reduced prices. Examples include Duavee for menopause symptoms at $30, Eucrisa for eczema at $162, and Tovias for overactive bladder at $42.

The deal is seen as positive for Pfizer’s stock and the pharmaceutical sector. It shifts policies potentially away from pharmaceutical tariffs and sets a path for other companies to follow. The agreement with Pfizer aims to benefit American patients by significantly reducing the cost of medicines while boosting innovation and the economy.

Read more at CNBC: Trump, Pfizer announce agreement to lower U.S. drug prices