Pharma stocks in focus as Trump unveils plan to cut prescription drug prices by up to 80%

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Pharmaceutical stocks are set to be in the spotlight on Monday, May 12, after U.S. President Donald Trump announced plans to slash prescription drug prices by 30% to 80% ‘almost immediately’, via his social media post on his “Truth Social” account on X.

“I am pleased to announce that Tomorrow morning, in the White House, at 9:00 A.M., I will be signing one of the most consequential Executive Orders in our Country’s history. Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%,” Trump said in his X post.


Link: https://x.com/TrumpDailyPosts/status/1921697332820578362

Trump made the announcement stating that the U.S. would pay the same price as the nation with the lowest pharmaceutical prices globally.


“I will be instituting a MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World. Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before,” he said in his post.

Trump also indicated that he would sign the executive order on Monday morning at the White House, further adding to market speculation regarding the impact on the pharmaceutical sector.Also read: Sebi may ease some F&O curbs amid market concerns

The announcement has drawn widespread attention as it could significantly alter pricing dynamics for major U.S. pharmaceutical companies, potentially pressuring profit margins.

The proposed measures are expected to introduce sweeping changes in drug pricing policies, impacting both domestic and international players in the sector.

Another key factor being closely monitored by the industry is the potential imposition of tariffs on drug imports into the U.S., for which further clarity is awaited. Trump previously stated that pharma tariffs would be set at "never-seen-before levels."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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