Pharma stocks mixed as Trump vows to slash U.S. drug prices
Global pharmaceutical stocks were mixed Monday after U.S. President Donald Trump signed an executive order aimed at reducing prescription drug prices in the United States by between 30%-80%, News.az reports citing Investing.
The policy, known as "most favored nation" pricing, would align U.S. drug costs with those of other high-income countries, Trump said in a social media post on Sunday. This could potentially impact the profitability of European and Asian drugmakers heavily reliant on the U.S. market, where consumers currently pay almost three times more for many prescription drugs than other wealthy nations.
In a Truth Social post on Monday, Trump wrote: "DRUG PRICES TO BE CUT BY 59%, PLUS! Gasoline, Energy, Groceries, and all other costs, DOWN. NO INFLATION!!!"
"Starting today, the United States will no longer subsidize the healthcare of foreign countries... and we’ll no longer tolerate profiteering and price gouging from Big Pharma," Trump said in a press conference Monday morning.
Trump stated that while the U.S. has less than 5% of the world’s population, 75% of drug companies’ revenue comes from the U.S.
The President explicitly called out the weight loss drug makers for charging significantly more in the U.S. than in other nations. "Ozempic costs 10 times more in the U.S.," he said.
Ozempic and Wegovy are manufactured by Novo Nordisk (CSE:NOVOb) (NYSE:NVO), and Zebound is made by Eli Lilly (NYSE:LLY). Novo shares fell 1%, and Eli Lilly traded flat. Both traded up from session lows.
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