By Nicholas G. Miller

Merck & Co. and Pfizer are each set to report their fourth-quarter results before the market opens Tuesday and could provide insight into the effects of deals with the Trump administration to lower drug prices.

The context:

The Trump administration has established agreements with several pharmaceutical companies to lower some drug prices to levels that other wealthy countries pay as part of a policy known as "most favored nation."

Pfizer said it would offer lower prices across a range of its drugs and invest in U.S. drug manufacturing in exchange for a tariff exemption. Merck agreed to reduce the price of its diabetes medication, Januvia, to $100 from $330 for patients purchasing through the TrumpRx platform.

Investors will be listening for commentary about the effects of those deals on the companies' profitability and any attempts to raise prices in other developed nations to offset lower prices in the U.S.

The numbers:

Pfizer is expected to post fourth-quarter adjusted earnings of 57 cents a share on revenue of $16.85 billion, according to analysts polled by FactSet. That compares with adjusted earnings of 63 cents a share on revenue of $17.76 billion a year ago.

Analysts expect Merck to record adjusted earnings of $2.01 a share and revenue of $16.2 billion. In the year-ago quarter, the company posted adjusted earnings of $1.72 a share and revenue of $15.62 billion.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

February 02, 2026 12:08 ET (17:08 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.