Global pharma stocks tumble after Trump pledges drug price cuts

Global pharmaceutical stocks fall Monday after former President Donald Trump promises to cut U.S. prescription drug prices to levels seen in other high-income nations.

In a Truth Social post, Trump vows a 59% reduction in drug prices, following an earlier pledge of a 30% to 80% cut “almost immediately.”

Shares of major U.S. drugmakers including AbbVie, Amgen, Pfizer, Eli Lilly and Merck drop between 2.2% and 3.7% in premarket trading. Pharmaceutical stocks in Europe, the United Kingdom, India, Australia and Japan also decline sharply.

In Europe, the Stoxx 600 healthcare index falls 2.9%, with AstraZeneca, GSK and Roche dropping between 3.3% and 6.8%. Indian companies Biocon and Lupin slip as India sends about one-third of its pharmaceutical exports to the United States.

Australian healthcare stocks fall 1.4% to their lowest level since April, with CSL and Mayne Pharma Group particularly hit due to their exposure to U.S. markets. In Japan, the pharmaceutical sector ends the day 6.5% lower, with Daiichi Sankyo plunging over 8%.

Hong Kong-listed Alphamab Oncology slides 14.4% to HK$6.28, leading losses among regional drugmakers. Meanwhile, Washington and Beijing say they agree to slash reciprocal tariffs after weekend talks, a move aimed at calming trade tensions that have shaken global markets.