** Shares of U.S. drugmakers fall between 1% and 2% premarket

** Shares of Eli Lilly LLY.N down 1.9%, Gilead GILD.O down 1.4%, Bristol Myers Squibb BMY.N down 1.3% and Merck MRK.N down 1% premarket

** U.S. President Donald Trump is expected to sign an executive order as early as next week that would revive an effort to decrease drug costs, Politico reported late on Wednesday

** Trump plans to reduce drug costs by tying the amount the government pays for some medicines to lower prices abroad, according to the report

** The order is expected to direct aides to pursue the initiative, called most favored nation, for a selection of drugs within the Medicare program

** "We would note that the Trump administration could face legal challenges on whatever most favored nation plan it attempts to implement (like it faced in 2020)" - Leerink Partners

** Up to last close, LLY up 0.4%, GILD up 7.1%, BMY down 15.8%, MRK down 20.5% YTD

(Reporting by Sneha S K )

(( Sneha.SK@thomsonreuters.com ))