Shares of AbbVie (ABBV) surged 6% last week, adding $23.5 billion to its market value. This increase was driven by positive investor sentiment in the pharmaceutical sector following Pfizer’s (PFE) deal with the Trump administration. Pfizer’s agreement addresses drug pricing and tariffs concerns, leading to optimism in the industry.

Pfizer’s deal with the Trump administration has paved the way for other pharmaceutical companies like AbbVie, AstraZeneca, and Eli Lilly to potentially follow suit. AstraZeneca plans to invest $50 billion in U.S. manufacturing and R&D, while Lilly aims to spend $27 billion on developing new manufacturing sites in the country.

AbbVie has also committed to a significant investment plan in the U.S., with recent announcements of a $70 million investment in its Worcester, MA facility to enhance bioresearch and manufacturing capabilities. This move is part of AbbVie’s broader plan to invest over $10 billion in the country over the next decade.

AbbVie’s stock performance has outpaced the industry this year, with a forward P/E ratio of 16.91, slightly higher than the industry average. The company’s EPS estimates for 2025 and 2026 have seen positive revisions in the past 60 days, with a current Zacks Rank #3 (Hold) status.

Investors are optimistic about the pharmaceutical sector following Pfizer’s deal, leading to increased stock prices for major players. Companies like AbbVie, AstraZeneca, and Eli Lilly have seen significant gains, with expectations of more positive developments in the industry. Other pharmaceutical giants have also committed billions to U.S. manufacturing and R&D investments.

Read more at Nasdaq: AbbVie Stock on the Move: What Sparked the 6% Jump in the Past Week?