President Trump presses drugmakers to cut U.S. drug prices, causing pharma stock declines

U.S. President Donald Trump has intensified efforts to pressure pharmaceutical companies to reduce drug prices, leading to a decline in European pharmaceutical stocks. In a series of letters to 17 major drug manufacturers—including Eli Lilly, Novo Nordisk, and Pfizer—Trump urged immediate reductions in Medicaid drug charges and requested that future medications be launched at prices comparable to those overseas. He set a 60-day deadline for voluntary compliance, warning of potential actions to protect American consumers from high drug costs. The stock prices of European drugmakers responded negatively, with Novo Nordisk experiencing a decline of up to 6%, and AstraZeneca and GSK falling by 4.2% and 2.1%, respectively. The broader pharmaceutical sector also saw a drop, with the S&P 500 Pharmaceuticals Index decreasing by 2.7%. Historically, the pharmaceutical industry has opposed linking drug prices globally, citing concerns over diminishing incentives for innovation and access to medicines. Industry leaders have called for a focus on negotiating drug prices through middlemen in the supply chain rather than implementing international price controls. While some companies expressed...