According to media reports, US President Donald Trump launched a website allowing Americans to purchase medicines directly. He announced that Pfizer would offer some of its drugs on this platform and introduce new medicines to the US market at reduced prices. Trump added that his administration is working with other companies, including Eli Lilly, to reach “similar agreements.”

Reports state that Pfizer’s deal with the Trump administration will enable patients to receive significant discounts. In return, the company will receive a three-year exemption from any tariffs.

The news pushed pharmaceutical stocks to the top of yesterday’s gainers list:
→ Pfizer Inc. (PFE) rose by 6.8%
→ Merck & Co Inc. (MRK) rose by 6.8%
→ Eli Lilly and Co. (LLY) rose by 5.0%

Technical analysis of the PFE chart

The chart indicates that:
→ In the long term, PFE’s share price remains in a bearish trend, highlighted by the descending orange channel.
→ However, in April the stock reached its lowest level in nearly 13 years, after which the price began showing an upward trajectory, forming higher highs and higher lows within the ascending blue channel.

A strong fundamental driver yesterday caused PFE’s share price to rebound sharply from the lower boundary of the blue channel towards its median, encountering little resistance when breaking through the September local barrier at $24.75.

It is possible that positive market sentiment will persist and be leveraged by bulls to extend the rally. However, the real test of their resolve might come at resistance near the summer highs around $26.00.

A more substantial obstacle might lie in the $27–27.50 area, where multiple resistances converge, including:
→ the upper boundaries of both the blue and orange channels;
→ key highs from the first half of 2025.

Nonetheless, assuming the fundamental backdrop continues to be supported by positive news on progress in cancer treatments (Pfizer is conducting large-scale developments in this area, aided by its acquisition of Seagen, a pioneer in antibody-drug conjugates, or ADCs), this could lead to an attempt to break the long-term downward trend as early as this year.

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