This is how exposed European Big Pharma is to the U.S.

Drug pricing has emerged as one of the biggest issues for pharmaceutical companies this year, at a time when the United States is trying to significantly reduce the costs paid by consumers.

High drug prices in the United States, the largest single market for most pharmaceutical and biotech companies (often costing nearly three times as much as in other countries), are a major factor in the industry’s dependence on American sales, where brand-name drugs command even higher premiums.

President Donald Trump has pushed for lower drug prices for Americans through so-called Most Favored Nation drug pricing, where prices in the United States are set at the lowest price paid by other rich countries. This can have a tremendous impact on companies’ balance sheets.

So exactly how open are Europe’s largest pharmaceutical companies to the US market?

Majority US sales

Among the 10 largest biopharmaceutical companies in the Stoxx 600 healthcare index, five generate the majority of their total sales from the United States: RocheNovo Nordisk, GSK, argenxAnd UCB.

Argenx was the most exposed product, with 85% of total sales originating from the US in the last reported period.

The least exposed are Germany’s Merck KGaA and BayerAbout 30% of sales come from the U.S. Both Merck and Bayer have diverse businesses that extend beyond pharmaceutical products, while Roche also has a sizeable diagnostics division.

Meanwhile, AstraZenecaThe largest company in the FTSE 100, the largest company in the FTSE 100, generates 42% of its sales from the USA and aims to increase this share with a revenue target of $ 80 billion by 2030. The company, which has a broad portfolio of blockbuster drugs that includes cancer, respiratory and diabetes drugs, said in its third-quarter earnings report that it is implementing a strategy to strengthen its U.S. operations to “power growth.”

The UK-based Cambridge company, like its counterparts, has promised significant investment in the USA NovartisRoche and GSK since Trump began his second presidential term.

make a deal

​Trump’s push to lower drug prices has led many companies on both sides of the Atlantic to make deals with the administration.

In May of this year, the president signed an agreement. executive order Establishment of MFN drug pricing. He also sent letters to 17 major drug manufacturers, urging them to reduce U.S. prescription prices to levels paid abroad.

At the same time, Trump has pushed to shift production of various goods, including drugs, abroad and has threatened to impose triple-digit tariffs on drug manufacturers that do not invest in U.S. manufacturing; This further increased the pressure on companies to make deals with his management.

​AstraZeneca, Novo Nordisk and other US pharmaceutical giants have already made deals with Trump to lower drug prices in the country, but analysts say this may not have a significant impact on profitability because of the way the deals are structured.

“[AstraZeneca’s] The MFN deal is more well-intentioned than it is appreciated, but EU countries may see reduced access to drugs,” Jefferies analysts said in November.

Bloomberg late Wednesday reported It was stated that Roche and Novartis, Europe’s two largest pharmaceutical companies by market value, are approaching drug pricing agreements with the Trump administration, which could be announced on Friday.

Both companies told CNBC that they support the administration’s goal of lowering drug costs for Americans but declined to endorse any imminent deal. Novartis said it was “discussed with Management.”

– Carolin Roth contributed to this report