New York, Jan 27, 2026, 19:28 ET — After-hours
- Pfizer shares jumped in after-hours trading following the selection of Xeljanz for Medicare price negotiations starting in 2028
- CMS sets Feb. 28 deadline for drugmakers to opt into negotiations
- Investors are watching Pfizer’s Feb. 3 earnings closely for clues on pricing risk and broader market impact
Pfizer’s stock jumped 2.3% to $26.50 in after-hours trading Tuesday. The boost follows the U.S. Centers for Medicare & Medicaid Services picking Pfizer’s arthritis drug Xeljanz for its upcoming Medicare drug price negotiations. Alongside Xeljanz, CMS included Gilead’s Biktarvy, AbbVie’s Botox, and Eli Lilly’s Trulicity. The agency said the 15 drugs chosen serve about 1.8 million Medicare patients and represent roughly $27 billion in Medicare drug spending. 1
The Medicare negotiation program draws attention for its power to reset government prices on top-selling brand-name drugs, influencing pricing across the U.S. Tuesday’s announcement marks a first: the program now covers certain Part B medicines—those administered in doctors’ offices—alongside the usual Part D pharmacy drugs.
Traders face tight deadlines: CMS set a Feb. 28 cutoff for companies to opt into negotiations, which will stretch through 2026. Pfizer’s earnings are looming as well. The pharma giant plans to release its Q4 and full-year 2025 results ahead of a Feb. 3 conference call at 10 a.m. EST. 2
Some investors appear unfazed by the immediate fallout, wagering the negotiation process will unfold slowly and stay under control. BMO Capital Markets analyst Evan Seigerman described earlier negotiation rounds as “reasonable” and anticipates the impact will remain “manageable,” especially as certain drugs approach the end of their patent protection, opening the door for generics. Industry group PhRMA pushed back, with policy chief Elizabeth Carpenter condemning government price setting as “the wrong approach for Americans.” 3
Pfizer’s shares closed the regular session 2.4% higher at $26.50, beating several big pharma rivals amid a choppy day for U.S. stocks, MarketWatch data showed. Volume also surged past its recent average. 4
Pfizer is looking beyond the pandemic slump, aiming to carve out its next growth phase. Back in December, it projected 2026 revenue between $59.5 billion and $62.5 billion, with adjusted earnings ranging from $2.80 to $3.00 per share. The company also warned that lower COVID-related sales and patent expirations will weigh on results. 5
The scale of any potential price cut remains unclear, and the political and legal battles over the program persist. If talks intensify or accelerate, it could weigh further on valuations across big pharma.
Pfizer’s Feb. 3 earnings report will deliver the first reaction to the new CMS list. Investors expect the call to shape the stock’s direction for the week ahead.
