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.
