European drugmakers fall after Trump raises stakes over US drug price cuts

By ankur BANERİNEE

Singapore (Reuters) -Yuna European Drug Machinery Cuts Record on Friday after the US President Donald Trump Months after signing a comprehensive executive order aimed at lowering prices, he sent a letter to reduce drug prices in the USA.

The letters were the last axis of a sector specified in the US-EU trade agreement and still struggling with the expectation of tariffs that could cost the pharmaceutical industry between 13 billion to 19 billion dollars.

Trump called on 17 drug producers to provide the most advanced nation prices to each patient registered with the government Medicaid health program for low -income people and to guarantee this pricing for new drugs.

European drug producers Sanofi, Astrazeneca, GSK, Merck KGAa and Novo Nordiskis shares fell between 1 and 4% in early transactions on Friday. Novo’s 4% decrease in a 28% decline on Tuesday this week, extended a sale of 28% and erased 70 billion dollars of the market value after releasing a snow warning of weight loss drug producer Wegovy and selecting a new CEO.

All companies were sent by Trump to respond to these terms with binding commitments until September 29th. Letters were sent to US drug producers such as Pfizer, Johnson & Johnson, Eli Lilly and Merck.

The European Health Index fell 1.4% compared to 0731 GMT, the lowest since April.

“Trump’s directive to pharmaceutical companies will put them to defend them and add another layer of uncertainty that may encounter for the sector. Import Tariffs At the time, Vas Vasu Menon, General Manager of OCBC Investment Strategy.

“Although Trump sets a deadline for compliance with these companies, it is seen whether this is hardly coded, or if these companies try to interact with it and to soften their stance, it is seen whether it will take back some of the threats.”

Analysts, lobbyists and drug pricing experts, pharmaceutical companies, Trump’s request to reduce US prices, said it was unlikely.

Companies such as Pfizer, Abbvie and German Merck KGAa’s US Department EMD Serono said they are open to work with the Trump administration.

In May, Trump’s executive order led drug producers to reduce the prices of drugs in a way that makes it compatible with what other countries paid, which led to a change on how to sell drug producers.

Swiss drug producer Roche said he was thinking of selling prescription drugs in the US last week directly to consumers.

(Reporting by Ankur Bannerjee in Singapore, Additional Reporting by Anna Pruchnickka;