By Joel Jose
(Reuters) -Global pharmaceutical stocks fell on Monday after President Donald Trump vowed to cut U.S. prescription drug prices to match those in other high-income nations.
In a Truth Social post on Monday, Trump promised a 59% price slash — compared with a 30% to 80% reduction, “almost immediately”, that he had pledged just a day ago.
Shares of major U.S. drugmakers AbbVie, Amgen, Pfizer, Eli Lilly and Merck fell between 2.2% and 3.7% in premarket trading.
Biotech companies will likely trade down amid fears of uncertainty around greater scrutiny and the pressure to lower drug pricing, said Jefferies analyst Michael Yee.
The U.S. pays the highest prices for prescription drugs, often nearly three times more than other developed nations. Trump has pledged to close the gap but has yet to outline how he will implement it.
We await clarity on what Trump means by “almost immediately” and which specific government programs will be targeted, said Leerink Partners analyst David Risinger.
Pharma stocks across Europe, UK, Australia, India and Japan also declined.
In Europe, a basket of healthcare stocks fell 2.9%, with AstraZeneca, GSK and Roche Holding down between 3.3% and 6.8%.
“This announcement could impact EU/US tariff talks,” said Kathleen Brooks, research director at trading platform XTB.
Will Trump “use price caps on pharma imports rather than tariffs to reduce the cost for U.S. patients? If yes, this could have big ramifications for pharma companies and their profits in Europe and elsewhere.”
Indian pharma stocks including Biocon and Lupin also saw declines. India sends a third of its total pharmaceutical exports to the United States.
Australian healthcare stocks fell 1.4% to their lowest since late April, with CSL Ltd and Mayne Pharma Group particularly vulnerable to U.S. pricing pressures as a significant portion of their revenue comes from the American market.
In Asia, Japan’s pharmaceutical sector closed 6.5% lower and was the worst performer among the Tokyo Stock Exchange’s 33 industry sub-indexes. Shares of Daiichi Sankyo sank over 8%.
Shares of Alphamab Oncology plunged 14.4% to HK$6.28, leading declines in Hong Kong-listed pharmaceutical stocks.Meanwhile, the U.S. and China said they have agreed to slash reciprocal tariffs, aiming to ease a trade war that has unsettled global markets.
(Reporting by Joel Jose, Siddarth S and Sriparna Roy in Bengaluru and Danilo Masoni in London; Editing by Amanda Cooper, Krishna Chandra Eluri and Shinjini Ganguli)
