Pfizer Shares Drop 1.87% on $1.07B Top Volume as Patent Cliff and Medicare Reforms Loom R&D Setbacks Add Pressure Amid Cost-Cutting Hopes

Pfizer (PFE) fell 1.87% on August 28, 2025, with a trading volume of $1.07 billion, reflecting heightened market activity. The decline follows a series of challenges, including the looming loss of exclusivity (LOE) for key drugs like Eliquis, Ibrance, and Xtandi, which will erode revenue starting in 2026. The company also faces a $1 billion annual impact from Medicare Part D price-setting reforms under the Inflation Reduction Act, which disproportionately affects its high-margin therapies. Meanwhile, uncertainty around future demand for its pandemic-related products, Comirnaty and Paxlovid, adds further volatility to its revenue outlook.

Rising tariffs on pharmaceutical imports, particularly under Trump’s proposed 250% tax, threaten to disrupt global supply chains and force costly domestic production shifts. These pressures are compounded by the recent failure of Pfizer’s experimental sickle cell drug in a late-stage trial, signaling risks to its pipeline’s ability to offset near-term revenue declines. However, analysts note that cost-cutting initiatives and R&D efficiency gains may help stabilize earnings, even as top-line growth remains constrained by patent expirations and regulatory headwinds.

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