Pharmaceutical stocks are enjoying tailwinds today, after President Donald Trump announced the launch of a direct-to-consumer website dubbed "TrumpRX." The new platform will enable Americans to buy their prescription drugs straight from the federal government. The White House said "virtually all drugs" would be available, with an 80% price discount for many of them.
The White House made the announcement alongside Pfizer Inc (NYSE:PFE) CEO Albert Bourla. The company is expected to lower drug prices for Medicaid and sell its medicines below current U.S. list prices for cash-paying consumers. Bourla said that in return, Trump agreed to a “three years grace period” for pharmaceutical tariffs on Pfizer.
PFE was last seen up 6.4% to trade at $25.34 at last check, bouncing off the $23 region to trade at its highest level since August. The security is also breaking back above its 20-day moving average as it paces for its best single-day percentage gain since 2021. Over the last 12 months, Pfizer stock has shed 12.3%.
Merck & Co (NYSE:MRK) stock is higher as well, last seen up 6.4% to trade at $83.59. The company revealed a new partnership with Variation AI earlier to leverage AI in drug development. Also on track for its best day since 2021, MRK is bouncing off a familiar floor at the $78 level as it trims its 16% year-to-date deficit.
Another drugmaker surging today is Bristol-Myers Squibb Co (NYSE:BMY), up 2.4% at $45.22 at last glance. Though the equity sports a 19.7% deficit for 2025, it is now pacing for its third-straight daily gain. Recent pressure near the $50 level could still present a hurdle for the shares, though.
Options bulls aren't holding back, with call volume running at 13, quadruple, and double the intraday average volume for PFE, MRK, and BMY, respectively. The weekly 10/3 series is most popular for all three, with the 25-strike, 85-strike, and 46.50-strike calls. New positions are being opened at all three of these contracts.
