Asian pharmaceutical stocks took a hit on Monday following an announcement by U.S. President Donald Trump about a new executive order aimed at reducing prescription drug prices in the U.S. by up to 80%.
The policy, referred to as “most favored nation” pricing, would align U.S. drug prices with those of other high-income countries. Trump shared details of the plan in a social media post on Sunday.
This policy could negatively affect Asian drugmakers, especially those dependent on the U.S. market, as it could lower the prices they receive for their products.
Japanese pharmaceutical companies were among the hardest hit, with Takeda Pharmaceutical (TYO:4502) dropping 4.5% and Astellas Pharma (TYO:4503) falling 3.8%.
In South Korea, shares of Samsung Biologics (KS:207940) and Hanmi Pharm Co (KS:128940) dropped by 4.2% and 2%, respectively.
Chinese companies also faced losses, with Zhejiang Hisun Pharmaceutical Co Ltd (SS:600267) declining by 1%.
In Australia, CSL Ltd (ASX:CSL), known for blood plasma and vaccine production, saw a 0.6% decrease, while Clinuvel Pharmaceuticals Ltd (ASX:CUV) lost nearly 2%, reflecting the broader regional trend.
Indian pharmaceutical giants, including Sun Pharma (NSE:SUN) and Cipla Ltd. (NSE:CIPL), are also under scrutiny, though Indian markets were closed on Monday due to a public holiday.
Many of these Asian pharma companies rely heavily on U.S. sales, making them particularly vulnerable to such policy changes.
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