By Dominic Chopping

Shares of global pharma stocks slumped on Monday after President Trump vowed to cut drug prices for Americans by as much as 80%.

Novo Nordisk, which generates around 60% of its sales in the U.S., is among the biggest losers in early European trade with shares falling 5%. Shares in other European names with hefty U.S. sales exposure are also under pressure, with AstraZeneca down 3.4%, Novartis dropping 3% and GSK shares falling 2.5%.

The reaction in Europe follows similar losses in Asia, where Japanese stocks that generate a significant portion of their revenue in the U.S. were hardest hit. Daiichi Sankyo shares fell over 8%, Otsuka Holdings lost 5.4%, and Roche Holding's Japanese unit, Chugai Pharmaceutical, was down 11.1%.

In Seoul, Samsung Biologics shed 4.7%, while Daewoong Pharmaceutical shares dropped 4.1%.

Pharma stocks were broadly weaker in China too.

In a Truth Social post, Trump said he will sign an executive order Monday aimed at lowering the cost of prescription drugs by between 30% and 80%. He said he will institute a policy known as "Most Favored Nation," where the U.S. government plans to pay prices for drugs that are tied to the prices paid by other countries.

Many other countries pay lower prices for medications because their single-payer healthcare systems negotiate for deals.

Trump didn't specify whether the order would apply to Medicare, Medicaid or other government programs.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

May 12, 2025 05:21 ET (09:21 GMT)

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