<div id="readability-page-1"><div><div><p><strong>Pfizer Inc</strong>'s (NYSE:PFE) deal with Washington isn't just a handshake in the Oval Office — it's a seismic jolt to America's drug-pricing game. By agreeing to sell medicines on the government's new <strong>TrumpRx</strong> platform at steep discounts and extend &#34;most favored nation&#34; (MFN) pricing to Medicaid, Pfizer bought itself a three-year tariff reprieve and plenty of goodwill. But the ripple effects could redraw the profit map for insurers, pharmacies, and rival drugmakers.</p><ul> <li><strong>Track PFE stock here.</strong></li> </ul><p>Now, three household names — <strong>UnitedHealth Group Inc </strong>(NYSE:UNH), <strong>Eli Lilly And Co </strong>(NYSE:LLY), and<strong> CVS Health Corp </strong>(NYSE:CVS) — suddenly find themselves center stage.</p><p><strong>Read Also: Pfizer Becomes First Drugmaker To Join Trump’s Price Cut Push</strong></p><h2>UnitedHealth: The PBM Party Could Be Over</h2><p>UnitedHealth's Optum Rx makes money on the &#34;spread&#34; — the difference between the list price and the net price after rebates. But what happens if TrumpRx and MFN pricing collapse that spread?</p><p>Fewer rebates mean thinner margins, and investors know PBM economics are already under fire in Washington. For UnitedHealth, lower drug costs may sound suitable for patients — but for Optum's bottom line, the math looks less cheerful.</p><h3>Eli Lilly: A Template Wrapped In A Warning</h3><p>Pfizer may have just handed Eli Lilly a playbook: cut a deal with Washington, keep tariffs at bay, and earn political cover. Lilly's blockbuster weight-loss drugs are already under the microscope — and TrumpRx could eventually pressure their U.S. pricing power. </p><p>In the short term, Lilly appears to be a winner; in the long term, it may be negotiating from a position of weakness if &#34;most favored nation&#34; pricing becomes widespread.</p><h3>CVS: Retail Giant Meets a New Competitor</h3><p>CVS isn't just a drugstore — it's a PBM powerhouse through Caremark. TrumpRx threatens both sides of the business. Manufacturer-to-patient fulfillment eats into retail volumes, while rebate compression squeezes Caremark's margins. </p><p>CVS won't collapse — most prescriptions still move through insurance — but the more drugs Washington funnels through TrumpRx, the more CVS's moat looks like it's springing leaks.</p><h2>Investor Takeaway</h2><p>Pfizer's concessions look benign on its own earnings — but for peers, the deal is a red flag. UnitedHealth faces PBM margin risk, Eli Lilly gets a short-term pop with a long-term leash, and CVS may see its retail and PBM dominance chipped away.</p><p>Call it &#34;Washington Capital&#34; at work: less worried about EPS, more worried about supply chains and voter optics. For investors, that means one thing — if Uncle Sam is your new competitor, you'd better rethink the trade.</p><ul> <li><strong>UnitedHealth’s Meta Moment? Bleeding Out Or Just A Bad X-Ray?</strong></li> </ul><p><em>Photo: Shutterstock</em></p></div></div></div>

<p>Pfizer's recent deal with the Trump administration to sell drugs at steep discounts through the TrumpRx platform is set to disrupt the drug pricing landscape. This agreement could impact major players like UnitedHealth, Eli Lilly, and CVS Health. UnitedHealth may face reduced margins due to lower drug costs, while Eli Lilly could benefit in the short term but may struggle with pricing power long-term. CVS's dual role as a pharmacy and PBM could be threatened as well. Investors are advised to reconsider their strategies in light of these developments.</p>

- Pfizer Inc's agreement with the government to sell medicines at significant discounts on the TrumpRx platform could reshape the drug pricing landscape in the U.S.  
- This deal provides Pfizer with a three-year tariff reprieve but poses challenges for competitors like UnitedHealth, Eli Lilly, and CVS Health, affecting their profit margins and pricing strategies.  
- Investors are advised to reconsider their positions as government involvement in drug pricing may disrupt traditional business models in the pharmaceutical sector.

Benzinga

Pfizer's TrumpRx Pact Sends Shockwaves: Why UnitedHealth, Lilly And CVS Can't Look Away