Shares in Pharmaceutical powerhouse Pfizer (PFE) are trading higher today after the company got a three-year reprieve from Trump’s pharma tariffs. Pfizer’s Chief Executive Officer Albert Bourla said the company secured a three-year grace period from Trump’s promised tariffs on pharmaceuticals in a deal that would lower some of the company’s US drug prices. Per Bourla, Pfizer will sell some drugs at a 50% average discount on a direct-to-consumer website called TrumpRx.

The US President previously said that his administration would impose 100% duties on branded pharmaceuticals starting Wednesday unless a company was building US manufacturing plants. “They’re all coming in over the next week. We’re making deals with all of them. And I said if we don’t make a deal, then we’re going to tariff them an extra, 5, 6, 7, 8%. Whatever the difference is, we’ll take that away,” Trump said.

Pfizer shares rose as much as 5.6% after the tariff relief was announced, touching a session high. The stock had declined 10% this year through Monday’s close, trailing the S&P 500 Index’s 13% gain.

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Additionally, Pfizer CEO Bourla announced a $70 billion push on research and development and domestic manufacturing over the next few years. The company had been one of the rare exceptions among major drugmakers that rushed to highlight the return of manufacturing facilities to the US. “We now have the certainty and stability we need on two critical fronts, tariffs and pricing, that have suppressed the industry’s valuations to historic lows,” Bourla said in a statement.

Priced at just 12.6 times trailing earnings, Pfizer (PFE) stock looks very cheap if the company can achieve any profit growth. Getting on Trump’s good side, and potentially becoming a preferred provider of drugs to Medicaid, could be one way for Pfizer to rev up its growth engine and send shares higher.