Albert Bourla confirmed that he called President Donald Trump after receiving a letter asking Pfizer and a clutch of other pharmaceutical companies to lower drug prices or face consequences.
Pfizer CEO Albert Bourla has been in direct contact with President Donald Trump and his healthcare chiefs to negotiate a path forward on Most Favored Nation drug pricing—but there’s not much to report at this point.
Bourla, responding to one of many questions posed to him during Pfizer’s second quarter earnings call on Tuesday, called the discussions with the Trump administration “productive.” The CEO confirmed that he called the president after receiving a letter sent to Pfizer and a clutch of other pharmaceutical companies asking them to lower drug prices or face consequences.
“These discussions are extremely productive. I think we understand where the president comes from, and we are engaging in a productive way to find a solution,” Bourla said. Perhaps in an effort to fend off further questions, he added: “But because we are in active discussions, it’s inappropriate for me to start providing more details.”
Bourla did, however, admit that the contents of the letter are a big ask for Pfizer, which included the known impacts of Most Favored Nation drug price changes and tariffs in its guidance this quarter. The CEO said he has been in discussion with Health and Human Services Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Administrator Mehmet Oz, among others.
“I’m happy the way that they listen to us, in the way that we are trying collectively to find solutions that, from one hand, could make medicines affordable in the U.S., on the other hand, will make our industry even more competitive compared to China,” Bourla said.
The CEO said that even Pfizer is looking for drug candidates there, noting that the team just got back from a week-long trip to China, scouting deals. “The opportunities are really, really big,” Bourla said. He said Republicans and Democrats are united in their concern over China’s emerging technical prowess.
Chinese drug developers have filed more patents than Americans this year, Bourla said, which suggests they are protecting their IP well. The Chinese government is also well supporting the industry and encouraging the biotech ecosystem.
“You won’t slow them down. They are very good. What we can do is to focus, to be better than that, and that should be our goal,” Bourla said.
Bourla declined to add much on tariffs, only saying similarly to his peers at other companies that Pfizer will await the Section 232 investigation that could support tariffs against the pharmaceutical industry as a matter of national security. The company is in discussion with trade officials to discuss tariffs, he added.
Pfizer’s latest guidance absorbs the currently implemented tariffs on Canada, China and Mexico, the company noted in its earnings release. Executives declined to provide the numbers on the impact.
Bourla was asked if he is attempting to negotiate a deal with the president that could address all the outstanding policy issues at once, including enforcing intellectual property protection, compounding pill parity, pharmacy benefit manager reform, the Inflation Reduction Act and more.
“You know that the president is impatient, so he wants the results quickly. We also want to come to a resolution quickly,” Bourla said.
Even with the tariff and drug pricing impact, Pfizer reaffirmed its revenue guidance of between $61 billion to $64 billion. Revenue was $14.7 billion for the quarter, representing 10% growth compared to the same period a year ago. Pfizer reported earnings per share of 78 cents, which was 36% above analyst consensus, according to Leerink Partners.
Thanks to an earlier R&D savings program, Pfizer is on track to see $7.2 billion in net cost savings by the end of 2027.
Pfizer CFO Dave Denton reported that the company has $13 billion in business development capacity after the up to $6 billion licensing agreement with 3SBio. The deal included $1.25 billion upfront. Denton explained that more cash has been freed up for deals as the Seagen deal moves further into the rearview. Denton and Bourla said to expect any future deals to be smaller to fit into the $13 billion capacity.
Bourla said that targets will stick to Pfizer’s core areas of oncology, vaccines, internal medicine and cardiometabolic and obesity.
