Pfizer's deal with Trump admin for lower Medicaid drug prices and tariff relief boosted European healthcare stocks.

European healthcare stocks jumped 2.7% to 3.1% on Wednesday after Pfizer struck a deal with the Trump administration to lower drug prices for Medicaid in exchange for tariff relief, easing fears of severe pricing pressures. The agreement, which includes a three-year exemption from national-security-related tariffs, prompted gains across major firms like Roche, AstraZeneca, Novartis, and Merck. The move is seen as a potential model for other global drugmakers, with many confirming ongoing talks. The rally lifted sentiment in a sector underperforming in 2025 amid uncertainty, though broader markets were mixed due to concerns over U.S. jobs data, a potential government shutdown, and weakening manufacturing activity in Europe.