Trump Demands Lower U.S. Drug Prices, European Pharma Stocks Slide

Shares of major European pharmaceutical companies fell on Friday after U.S. President Donald Trump sent letters to 17 drugmakers demanding that they match the lowest prices paid overseas for medicines sold to patients covered by Medicaid. The companies have until 29 September to provide binding commitments, escalating a push that began with a sweeping executive order in May aimed at lowering domestic drug costs. Sanofi, AstraZeneca, GSK, Merck KGaA and Novo Nordisk declined between 1 percent and 4 percent, dragging the STOXX Europe 600 Health Care Index 0.7 percent lower by 12:09 p.m. GMT. Novo Nordisk’s drop extended a week-long slide that began with a 28 percent plunge on Tuesday after a profit warning, erasing roughly $70 billion in market value. Analysts said the demand adds a fresh layer of uncertainty for a sector already contending with the possibility of new U.S.–EU tariffs that could raise costs by an estimated $19 billion a year. While several drugmakers signalled a willingness to engage with the administration, observers questioned whether the White House has the legal authority to enforce the pricing policy.