Moderna, Inc. (MRNA) stock is soaring 5.79% in Wednesday's trading session, riding a wave of optimism that has swept across the pharmaceutical sector. The surge comes in the wake of a pricing agreement between rival Pfizer Inc. and the U.S. government, which has opened the door for other pharma companies to potentially strike similar deals.

The positive sentiment is not limited to Moderna alone. Other major players in the pharmaceutical industry are also seeing significant gains, with AstraZeneca up nearly 7%, Sanofi up 4%, and companies like Novavax and Eli Lilly rising over 3%. Even Pfizer, the architect of the deal, is up more than 2%.

The catalyst for this sector-wide rally is Pfizer's agreement with the U.S. government, announced on Tuesday. Under the terms of the deal, Pfizer will sell some drugs at an average 50% discount on a direct-to-consumer website called TrumpRx. This initiative aims to allow Americans to purchase prescriptions at discounted rates negotiated by the government. Crucially, the agreement also secures Pfizer a three-year grace period from President Donald Trump's promised tariffs on pharmaceuticals. Analysts suggest that this deal provides a blueprint for other pharmaceutical companies, including Moderna, to potentially negotiate similar arrangements, avoiding tariffs and securing their position in the crucial U.S. market – the largest pharmaceutical market in the world.