Asian pharmaceutical stocks experienced significant declines on Monday after U.S. President Donald Trump announced plans to sign an executive order aimed at reducing prescription drug prices in the United States by 30% to 80%. The proposed policy, known as “most favored nation” pricing, would align U.S. drug costs with those of other high-income countries, potentially impacting the profitability of drugmakers heavily reliant on the U.S. market.
In Japan, shares of Takeda Pharmaceutical and Astellas Pharma fell by 5.5% and 3.9%, respectively. South Korea’s Samsung Biologics and Hanmi Pharm Co saw their shares drop by 4.7% and 0.7%, respectively. Chinese pharmaceutical companies, including Zhejiang Hisun Pharmaceutical, also faced pressure, with shares falling 0.7%. In Australia, CSL Ltd, a leading blood plasma and vaccine producer, fell 1.7%, while Clinuvel Pharmaceuticals Ltd lost 3%. India’s Sun Pharmaceutical Industries declined by 3.3%.
The announcement has raised concerns among investors about the potential impact on the pharmaceutical industry’s profitability, especially for companies that derive a significant portion of their revenue from the U.S. market. Analysts note that while the exact details of the executive order are yet to be disclosed, the move is aggressive and could face legal and political opposition.
