Trump's Pharma Pricing Deal Expands Amid Sector Boom

President Trump announced nine new pharmaceutical firms have joined his drug-pricing deal on Monday. The combined deals will save Americans more than $600 billion, according to a White House fact sheet.

The companies include Alcon, Astellas Pharma, and Teva Pharmaceuticals. They pledged $19.6 billion toward U.S. manufacturing and agreed to offer their drugs at discounted prices in every state Medicaid program.

Michael Yee, global head of biotechnology equity research at UBS, said the pricing deals have removed a major source of uncertainty for the sector. He also highlighted several pharmaceutical companies as potential investments, including Merck and Revolution Medicines.

The SPDR S&P Biotech ETF (XBI) has climbed 80% in the last 12 months, outpacing most other equity sectors. Yee said the current move looks more like the start of a longer re-rating than a short-lived bounce.