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14 handpicked stocks

Drug Pricing Deals Drive US Manufacturing in 2025

Johnson & Johnson secured a deal with the U.S. government to lower drug prices in exchange for tariff exemptions, expanding on a major policy trend. This theme identifies opportunities among pharmaceutical companies and domestic manufacturers benefiting from government incentives to onshore production.

Author avatar

Han Tan | Market Analyst

Published on January 9

Your Basket's Financial Footprint

This basket's total market capitalisation is 1,481,736.7483 and is heavily anchored by a small number of very large-cap stocks. That concentration tends to give the basket a large-cap profile with lower expected volatility and more market-like behaviour.

Key Takeaways for Investors:
  • Large-cap dominance generally implies lower volatility and closer tracking of broad markets, suggesting relatively stable performance and reduced tail risk.
  • Use as a core holding for diversified portfolios; not ideal for short-term speculative positions.
  • Expect steady, long-term value accumulation rather than rapid, explosive gains; growth tends to be gradual.
Total Market Cap
  • LLY: $1.03T

  • MCK: $100.55B

  • BMY: $113.80B

  • Other

About This Group of Stocks

1

Our Expert Thinking

The US government is striking deals with major pharmaceutical companies, offering tariff exemptions in exchange for lower drug prices. This policy shift creates significant opportunities for companies involved in domestic pharmaceutical manufacturing and supply chains, as billions in investment flows toward onshoring critical healthcare production.

2

What You Need to Know

This collection includes two key types of companies: established pharmaceutical giants navigating new pricing agreements, and domestic manufacturers positioned to benefit from reshoring efforts. The trend spans contract manufacturing, logistics, medical devices, and specialised healthcare components essential for expanding US-based production.

3

Why These Stocks

Each company was handpicked based on their strategic positioning within this evolving landscape. From major pharmaceutical players like Eli Lilly and Bristol-Myers Squibb to specialised manufacturers like West Pharmaceutical Services, these stocks represent direct exposure to government incentives driving healthcare manufacturing back to American shores.

Why You'll Want to Watch These Stocks

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Policy-Driven Opportunity

Government incentives are reshaping the pharmaceutical landscape, creating clear winners amongst companies positioned for domestic manufacturing growth.

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Billions in New Investment

Major drug makers are committing multi-billion dollar investments to US-based production, driving demand for specialised manufacturing and supply chain partners.

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Supply Chain Revolution

The shift from overseas to domestic pharmaceutical manufacturing represents one of the most significant structural changes in healthcare in decades.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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