It has been a remarkable month for CSL Ltd (ASX: CSL) shareholders, and the stock is pushing higher again on Tuesday.
The CSL share price is up 2.09% to $175.15 at the time of writing, extending a rally that has driven the stock up more than 40% over the past month.
That recovery has wiped out most of its losses from earlier in the year, leaving CSL shares roughly flat in 2026.
So, what has investors looking at the stock again today?
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CSL reaches deal with the US government
According to the release, CSL has reached two agreements with the Trump administration covering drug pricing and its manufacturing plans in the United States.
The first is with the US Department of Health and Human Services.
Under the deal, CSL will give the Medicaid program access to its medicines at prices comparable with those available in other developed countries.
It has also agreed to take a similar approach with any newly launched therapies across US payers.
The second agreement is with the US Department of Commerce and relates to CSL's US$1.5 billion expansion in Kankakee, Illinois.
That project was first announced in April and is designed to increase the company's capacity to produce plasma-derived therapies in the US.
CSL said the agreements give it "greater certainty regarding exposure to U.S. drug pricing and certain Section 232 tariffs".
Despite the new arrangements, the company does not expect them to have any material financial impact in FY27.
Why this could be a relief for investors
US drug pricing has been one of the issues hanging over global pharmaceutical companies this year.
The agreement gives investors more clarity around how CSL will operate in its biggest market, while also tying in with its existing plan to increase US manufacturing.
And this announcement comes just after a difficult period for the company.
CSL reported a statutory net loss of US$2.58 billion in FY26 after recording major impairments, although underlying profit came in at US$3.1 billion.
Revenue increased 1% to US$15.8 billion, while management is targeting around 5% underlying profit growth in FY27.
The company has also been dealing with weaker US vaccination rates and softer sales in parts of its plasma business.
Has the rally gone too far?
After a move of more than 40% in just over a month, CSL shares have already come a long way from their July lows.
The stock was trading below $125 in late July and is now back above $175, which changes the conversation a little.
Yes, the latest US deal is another positive step, but a lot of the easy recovery has already happened.
From here, I think investors will be looking more closely at whether earnings can start doing some of the heavy lifting.
