1206 GMT - U.S. President Trump's potential drug price cap policy appears alarming for the pharma sector, Berenberg analysts say in a note. Trump said his "Most Favored Nation" policy would lower U.S. drug prices by 30%-80%. "It is worth considering exactly how this might be implemented given the complex system of U.S. drug pricing and reimbursement and lack of full disclosure on ex-U.S. drug prices," the analysts say. The analysts estimate U.S. pharma giant Bristol Myers to be most exposed to price cuts in the government channels, while Sanofi would be the least affected. It remains unclear how the policy will be implemented and whether certain drug classes will be exempted, they say. AstraZeneca shares fall 3.2% in early afternoon trade, GSK loses 2%, Sanofi is down 1.8% and Novo Nordisk drops 3.2%. (helena.smolak@wsj.com)

(END) Dow Jones Newswires

1209 GMT - Trump's 'Most Favored Nation' drug pricing policy represents an overhang to the pharma sector despite uncertainty on whether the order will garner sufficient political support in Congress, Bryan Garnier Research analysts say in a note. Trump introduced a similar policy in his first term in 2020, which was blocked by a federal judge and ultimately removed by then-President Biden in 2021, the analysts say. It is unclear which programs of Medicare would be affected if the policy takes effect, they say. Roche, AstraZeneca and Novartis shares fall 3.8%, 3.2% and 2.6% in early afternoon trade, respectively. GSK loses 2%, Sanofi is down 1.8% and Novo Nordisk drops 3.2%.(helena.smolak@wsj.com)

(END) Dow Jones Newswires

May 12, 2025 08:09 ET (12:09 GMT)

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