Shares of main European pharmaceutical companies declined on Friday after U.S. President Donald Trump despatched letters to 17 world drugmakers demanding they align U.S. costs with these supplied in different nations. The transfer follows a sweeping govt order signed earlier this 12 months aimed toward curbing excessive drug prices within the United States.
Pharma giants Novo Nordisk, Sanofi, AstraZeneca, GSK, and Merck KGaA noticed shares fall between 1% and 4% in early Friday buying and selling. Novo Nordisk, already beneath strain after a 28% plunge earlier within the week attributable to a revenue warning and CEO transition, hit a four-year low with an extra 4% drop.
The broader European healthcare index (.SXDP) dropped 1.4% by 07:31 GMT, its lowest degree since April.
Trump’s letters arrive amid ongoing uncertainty surrounding the U.S.-EU commerce deal, which may expose pharmaceutical companies to tariffs costing $13–19 billion.
“This directive adds another layer of uncertainty for the pharmaceutical sector,” stated Vasu Menon, Managing Director of Investment Strategy at OCBC. “While there’s a deadline in place, Trump may soften his stance if companies show willingness to negotiate.”
American drugmakers together with Pfizer, Johnson & Johnson, Eli Lilly, AbbVie, and Merck & Co. additionally obtained related letters. Some have responded, expressing openness to participating with the administration.
Despite the strain, analysts and drug pricing specialists say full compliance with Trump’s calls for is unlikely. However, the political strain may reshape the way in which firms strategy pricing and distribution within the U.S. market.
In an indication of potential modifications, Swiss drugmaker Roche just lately introduced it’s contemplating promoting prescription medicines on to U.S. shoppers to decrease affected person prices as a part of ongoing talks with the federal government.
Meanwhile, U.S. shares closed decrease on Thursday, with the Dow down 0.75%, the S&P 500 down 0.35%, and the Nasdaq closing barely within the purple.
