LLY

Reports of a potential drug-pricing agreement between the White House and the pharmaceutical industry, including Eli Lilly, contributed to the stock's surge. This agreement is part of the Trump administration's "Most Favored Nation" initiative, which aims to lower prescription drug costs for Americans by tying U.S. medication prices to the lowest costs paid by other wealthy nations.

Pfizer's recent deal with the White House to lower drug prices and extend "most favored nation" pricing to Medicaid served as a template for how other pharmaceutical companies, including Eli Lilly, might navigate future pricing policies. This pact not only provided Pfizer with a three-year tariff reprieve but also signaled a direction for the industry, making it more likely for other companies to follow suit.