Trump’s Drug Price Cut Plan Slashes Pharma Stocks

The President Donald Trump declared his intention to execute an executive order which would decrease US prescription drug prices between 30–80% by implementing a “most favored nation” policy to match international price levels. Through his Truth Social post on Sunday he attacked pharmaceutical companies while denying their research expenses and stated his determination to fight against their lobbying efforts. The pharmaceutical industry experienced a major stock market decline after the announcement. Pharmaceutical stocks experienced significant declines in London where AstraZeneca dropped 5% and GSK declined 3.2% while Novo Nordisk in Denmark fell 7.5% and Roche in Switzerland decreased 3.6%. The Pharmaceutical Research and Manufacturers of America expressed concerns that price controls would damage both patient care and innovation because China presents an alternative market. The court rejected Trump's price-cap initiatives during his first term and it remains unclear whether the new order targets Medicare or other programs. European drugmakers have started US manufacturing investments because of tariff threats while Trump suggests he will show leniency toward such initiatives. The policy seeks to reduce American drug expenses yet it threatens the profitability of an industry which drives worldwide health progress.