Trump’s Drug Price War Sends Asian Pharma Stocks Into Tailspin

Asian pharmaceutical markets are reeling after Trump’s latest pledge to slash US drug prices—because when America sneezes, the global healthcare complex catches pneumonia.

Behind the sell-off: Investors fear margin compression as US pricing power evaporates. Generic drugmakers from Mumbai to Shanghai saw double-digit drops within hours of the announcement.

The irony? These same companies spent years optimizing supply chains to profit from America’s inflated drug prices. Now their golden goose might get cooked by the very system they exploited.

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Shock waves spread through Asian pharma markets

Shares in Japanese drugmaker Chugai Pharmaceutical Co. fell as much as 7.2% in early trading on Monday, their steepest slide in a month. 

Daiichi Sankyo Co. and Takeda Pharmaceutical Co. each lost about 5%. In South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all dropped more than 3%.

Analyst Hidemaru Yamaguchi at Citigroup Global Markets Japan Inc. said in a note that, although the legal path is “questionable,” the announcement is negative for the whole sector. 

Firms that depend on the United States for a big share of revenue—such as Takeda, Astellas Pharma Inc. and Otsuka Holdings Co.—are especially exposed, he added. Shares of Astellas and Otsuka also traded lower.

Investors worry that any American MOVE to squeeze prices could prompt tougher talks in other countries and shrink profit margins. The concern surfaces as many drug makers rely on U.S. sales to fund high-cost trials for cancer and next-generation therapies.

The WHITE House has not released the full text of the order. Executives and lobbyists are expected to study the language once it is published to see whether it can be challenged in court. 

For now, both Wall Street and health-care watchers are waiting to see if Monday’s signing sets off a long legal fight—or a quick gain for shoppers at the pharmacy counter, for everyday American families.

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