New York, January 28, 2026, 11:16 a.m. ET — Regular session
- Pfizer shares fall about 1.7% as CMS selects Xeljanz for Medicare price negotiations effective in 2028
- CMS data put Medicare spending on Xeljanz and Xeljanz XR at about $1.0 billion in the latest measuring period
- Investors next look to Pfizer’s Feb. 3 quarterly update and a Feb. 28 CMS participation deadline for drugmakers
Pfizer (PFE) shares were down 1.7% at $26.06 in late morning trade on Wednesday after the U.S. Centers for Medicare & Medicaid Services added its arthritis drug Xeljanz to the next round of Medicare drug price negotiations. CMS said the talks will run in 2026, with negotiated prices slated to take effect on Jan. 1, 2028, and companies facing a Feb. 28 deadline to sign participation agreements. 1
The selection lands at an awkward time for big drugmakers. Investors have been trying to map out how much the next wave of Medicare pricing pressure could shave off U.S. sales, even if the hit is still years away.
For Pfizer, the sensitivity is higher because the company is already trying to steady revenue after the pandemic boom, while keeping a lid on costs and protecting older products from cheaper competition.
CMS’ fact sheet showed Xeljanz and Xeljanz XR accounted for about $1.01 billion in Medicare prescription drug spending and were used by roughly 22,000 Medicare enrollees in the 12 months from November 2024 through October 2025. 2
The government’s 2028 list also includes Eli Lilly’s diabetes drug Trulicity, AbbVie’s Botox and Gilead’s HIV treatment Biktarvy, among others. BMO Capital Markets analyst Evan Seigerman said the impact should be “manageable,” pointing to what he called reasonable outcomes in earlier negotiation rounds and the fact that some drugs are nearing loss of exclusivity — when patents expire and cheaper copies can enter. 3
Pfizer’s stock had climbed 2.4% on Tuesday to close at $26.50, outperforming several big pharma peers and trading on heavier-than-average volume, a MarketWatch report showed. 4
The broader health care group was softer on Wednesday, with the Health Care Select Sector SPDR Fund down about 0.6% while the SPDR S&P 500 ETF was little changed.
Separately, Pfizer said on Tuesday it entered an agreement with Walgreens to help eligible U.S. adults navigate vaccines and testing through outreach from local pharmacists. The company described reminders by text or phone and help with scheduling appointments for vaccines such as COVID-19 and flu, along with in-person testing. 5
Investors are also looking ahead to Pfizer’s next scheduled quarterly update. Pfizer has set a fourth-quarter results call for Feb. 3 at 10:00 a.m. ET, according to its investor relations calendar. 6
In December, Pfizer forecast 2026 adjusted profit of $2.80 to $3.00 per share and said it expected revenue of $59.5 billion to $62.5 billion as it faces lower COVID product sales and hits from drugs losing exclusivity. Bernstein analyst Courtney Breen wrote then that “this stock is unlikely to break out of its current mid-20s price range until investors are convinced of a growth trajectory.” 7
But the Medicare process can still surprise markets. The size of eventual discounts is uncertain, and the industry continues to push back as the legal and political fight over the program drags on.
Traders will listen on Feb. 3 for any fresh commentary on U.S. pricing exposure, including what the Xeljanz selection means for Pfizer’s longer-dated assumptions.
