LLY

US-rooted pharma businesses have significantly grown over the last 48 hours, with some of them getting double digits of its share price increase. This was due to a deal made with the Trump cabinet, which included direct selling of prescription drugs to consumers through the new website for Americans to buy necessary medicine, called TrumpRx.com, launching in 2026. The move is going to cut out so many middlemen like pharmacy chains, insurers and other beneficiaries to bring drug prices down. Good for patients, good for a stronger rebound in the industry, good for the promises of president Trump, who has said more than once that he wanted to make Americans the "most favored nation" in terms of pharmaceutical pricing and tariffs against the current situation when most US patients often pay nearly three times more for prescription medicaments than in other developed nations. Eli Lilly (LLY), Merck (MRK), Pfizer (PFE) and others in recent months have made pledges to boost their US manufacturing investment after Trump’s threats on higher trans border levies, and now this is happily settled down. "The United States is done subsidizing the healthcare of the rest of the world," Trump proclaimed when speaking at the Oval Office event, where he was accompanied by Pfizer CEO Albert Bourla and Health Secretary Robert F. Kennedy Jr. Trump added that Pfizer would offer that "most-favored-nation" pricing on all of its drugs within the Medicaid program for 70 million low-income Americans in exchange for tariff relief while other drug makers will "follow suit". Eli Lilly has been "fantastic" in these negotiations, according to Trump, which helped Eli Lilly share price to soar by more than 8% on the first trading day of October to reach $825 compared to just above $725 in early US morning of September 30.

It's not a surprise to me and my readers, as we discussed earlier that Eli Lilly seemed ready for a take-off from its previous price corridor at any moment after a set of successful trials of its much more convenient daily weight loss pill instead of injections. Now Eli Lilly has won the most by getting such an impressive boost together with all other representatives of the pharma industry. It is all now transforming into new fuel to generate an even wider stream of income for Wall Street investors. This is another powerful driver for stock indexes following the AI-based long-term factor, which has already allowed the S&P 500 to set a new historical record above 6,725 points overnight.

Merck added 7.4% only this Wednesday to probably end its lasting correction pattern since summer 2024. Shares of Pfizer rose by 6.8% during the same trading session, but still continue its bottoming between $25 and $30, as the firm is not yet able to recover from post-pandemic losses, when people no longer need large quantities of COVID vaccines. Abbvie (ABBV) gained 5.55%, reaching a fresh all-time peak for its market value. It's now $244.38 per share, up from just over $220 a couple of days ago. As for Eli Lilly, I personally bet on at least a range from $925 to $950 per share, that is on a more than $100 of further rise in the coming months, of which at least half may occur within several weeks.