Pfizer's decision to announce a deal with the Trump administration on drug prices Tuesday caused an uproar within much of the pharmaceutical industry, most of which was caught off guard by the announcement.
Why it matters: Pfizer CEO Albert Bourla's acquiescence to President Trump's demands — broadcast live from the Oval Office as the two men stood side by side — puts much more pressure on other drug companies to fall in line after months of unified resistance to Trump's "most favored nation" pricing plan.
Driving the news: Pharmaceutical lobbyists said the agreement was more far-reaching than they expected and would put pressure on other companies to reach similar terms on international pricing parity and other issues.
President Trump said that he expects other companies to individually make deals in the coming weeks, naming Eli Lilly as one possible company. He raised the threat of additional tariffs on companies that do not come to the table. Between the lines: "The interesting element to me is how many companies sort of knew something was going on but refused to allow themselves to believe a deal would get cut," said one source familiar with the negotiations between drug companies and the administration.
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