Pfizer (PFE) CEO Albert Bourla said Tuesday he maintains a “special relationship” with President Trump, a bond formed during the COVID-19 pandemic when the two were in frequent contact to accelerate vaccine development. That connection, Bourla noted, has enabled a direct line of communication to address major regulatory and economic hurdles the pharmaceutical giant is now facing out of Washington.
In his second term, Trump has zeroed in on the pharmaceutical industry, criticizing high drug prices and reliance on foreign manufacturing — with tariff threats reaching as high as 250% on imported drugs. Still, Bourla told Yahoo Finance that constructive dialogue is ongoing between the administration and industry leaders on issues such as tariffs and drug pricing.
“I think [Trump] is educated, of course he doesn’t go into the details, it’s not his job, but he understands the dynamics [of the industry],” Bourla said.
Asked specifically about potential tariffs, Bourla shared insights from his private discussions with the White House.
“I don’t want to speak for the president, but what he said today, which was very important also, was that it would be a very small tariff in the first couple of years. And then he opened the window for a grace period. Because I had this discussion with him and I had this discussion with multiple other members of the administration,” he said.
The pharmaceutical industry is now awaiting the results of a formal tariff investigation by the Trump administration — with critical questions still unresolved. Bourla cautioned that implementation details will be key.
Currently, more than 90% of U.S. prescriptions are generics, which are typically the most affordable. Branded drugs, however, are pricier and mostly produced domestically. But crucial ingredients — active pharmaceutical ingredients (APIs) — are often sourced from overseas, which could impact how the tariffs are ultimately applied.
“We need to understand if the API will dictate the country of origin, or where the final product is made,” Bourla said.
Pfizer is also among several companies that received a letter from President Trump last week demanding price cuts for Medicare and Medicaid patients to match those paid in developed countries — under the Most Favored Nations (MFN) pricing policy.
Bourla said Pfizer is preparing for reduced pricing implementation and developing strategies to minimize negative impacts.
“We are still discussing it with the president. … The devil could be in the details in these stages,” he said.
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