New York, January 28, 2026, 13:02 EST — Trading in regular session.
- Pfizer shares dropped roughly 2% after U.S. Medicare included Xeljanz in its list for upcoming price talks.
- CMS has identified 15 drugs for negotiated pricing beginning in 2028; drugmakers must decide by February 28.
- Traders are eyeing Pfizer’s February 3 earnings for new clues on 2026 headwinds and potential offsets.
Pfizer shares dropped 1.8% to $26.02 in early afternoon trading, having fluctuated between $25.97 and $26.39.
The pullback arrives as investors absorb a fresh U.S. Medicare drug-pricing list featuring Pfizer’s arthritis drug Xeljanz. For major pharmaceutical companies, the inclusion signals that Washington’s price cuts have shifted from headline risk to a ticking clock on the calendar.
This round is crucial because it directly impacts 2026 planning: companies will negotiate in 2026, but the prices set then won’t take effect until 2028. It also broadens the scope beyond just retail prescriptions, including some physician-administered drugs covered under a different Medicare category.
On Tuesday, the U.S. government selected 15 drugs for the upcoming Medicare price negotiations under the 2022 Inflation Reduction Act. The list includes Xeljanz, along with AbbVie’s Botox and Eli Lilly’s diabetes medication Trulicity. BMO Capital Markets analyst Evan Seigerman said the prior rounds of negotiations were “reasonable” and expects the effects to remain “manageable.” In contrast, PhRMA’s Elizabeth Carpenter criticized the government’s price-setting, calling it “the wrong approach.” 1
CMS announced that negotiations will happen this year, with any agreed prices kicking in January 1, 2028. Companies with a selected drug have until February 28 to opt in. “CMS is taking strong action to target the most expensive drugs in Medicare,” said Administrator Dr. Mehmet Oz. Deputy Administrator Chris Klomp highlighted the “commitment to transparency” linked to the broader eligibility list. 2
Pfizer’s shares rose Tuesday, ending the day 2.4% higher at $26.50. Trading volume surpassed its 50-day average, data from MarketWatch showed. 3
The broader healthcare sector dipped Wednesday, with the Health Care Select Sector SPDR Fund sliding roughly 0.8%. The S&P 500 remained mostly flat. Johnson & Johnson gained around 1.3%, but Eli Lilly slipped nearly 2.8%, and AbbVie fell close to 1.9%.
Pfizer will release its fourth-quarter results on February 3, followed by a webcast at 10 a.m. ET. Investors will be watching closely for details on pricing pressure and the impact of upcoming patent expirations in 2026 forecasts. The call should also shed light on whether management plans to rely further on cost-cutting and new product launches. 4
One risk: the exact size of Medicare price cuts won’t be clear until negotiations conclude, yet investors often jump the gun on worst-case scenarios. Pfizer has already forecasted 2026 revenue between $59.5 billion and $62.5 billion, with adjusted diluted EPS in the $2.80 to $3.00 range. The company pointed to lower expected COVID-product sales and anticipated losses from products going off-patent. 5
Traders are focusing on February 3 for clues about any change in the 2026 outlook, while the February 28 CMS deadline will reveal if manufacturers commit to the 2028 negotiation round.
