WASHINGTON — Pfizer and President Donald Trump on Tuesday said they had cut a deal in which the U.S.-based drugmaker agreed to lower prescription drug prices in the Medicaid program to what it charges 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 U.S. and flagged that other drugmakers will follow suit.

Shares of Pfizer rose more than 6%, and the news lifted Eli Lilly, Merck, Amgen, AbbVie and GSK shares as well on investor relief that they would escape the worst of tariffs.

U.S. patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to wh

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