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U.S.-based pharmaceutical company Pfizer announced Tuesday that it will invest $70 billion to expand its research, development, and manufacturing operations in the United States, following a three-year agreement with the Trump administration that postpones planned tariffs on its products and introduces new measures to lower drug costs.
The company said the multi-year investment would be directed toward reshoring pharmaceutical production, expanding facilities, and supporting capital projects.
Pfizer currently employs about 31,000 people in the United States across 13 manufacturing and distribution sites and seven major research and development centers.
Pfizer described the new commitment as a step to "return manufacturing home" and reinforce the country’s role as a global hub for biopharmaceutical innovation.
The company highlighted that the pledge builds on more than $83 billion already invested in U.S. biotech innovation between 2018 and 2024.
The investment pledge was part of a broader deal with the White House, which grants Pfizer a three-year reprieve from tariffs that had been under consideration for branded pharmaceutical imports.
In exchange, Pfizer agreed to adjust its pricing policies in the U.S. market.
Under the arrangement, Medicaid—the government health insurance program for low-income Americans—will benefit from "Most Favored Nation" pricing, ensuring drug costs match the lowest levels charged in other developed countries.
Pfizer also committed to listing a large portion of its primary care treatments and some specialty medicines at discounts ranging from 50% to 85%.
U.S. President Donald Trump, who announced the deal alongside health officials, said the agreement was designed to lower costs for patients while boosting domestic production.
A White House-backed platform, TrumpRx.gov, is expected to allow Americans to purchase certain medicines directly from manufacturers at reduced rates.
Pfizer CEO Albert Bourla said the deal provides "certainty and stability" for the industry on both tariffs and pricing, conditions he argued were necessary for renewed investment.
"This agreement allows us to invest even more boldly in the United States—fueling growth, creating jobs, and returning manufacturing home," he said in a statement.
While Medicaid beneficiaries are set to benefit directly, analysts noted it remains unclear how the agreement will affect the broader commercial insurance market, which covers the majority of U.S. patients.
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