Shares in London-based pharmaceutical companies GSK and Astrazeneca experienced a significant drop on Monday morning following President Donald Trump's announcement that the US' new pharma policy would cause drug prices to "rise throughout the world."
GSK saw a three per cent decrease, while Astrazeneca fell nearly four per cent as markets opened, as reported by .
The President revealed the new plans during his latest rant on Truth Social. "I am pleased to announce that Tomorrow morning, in the White House, at 9:00 AM (14:00BST), I will be signing one of the most consequential Executive Orders in our Country's history," Trump wrote.
He stated that the executive order would implement a "most favoured nation's policy", whereby the US would match the price of the nation that pays the least. Trump claimed that prescription drug and pharmaceutical prices would reduce "almost immediately, by 30 per cent to 80 per cent."
"Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before."
"Additionally, on top of everything else, the United States will save TRILLIONS OF DOLLARS," the President said.
US market crucial for º£½ÇÊÓƵ pharma
Trump first suggested the idea of pharma tariffs following his 'Liberation Day' levies – where he announced extensive tariffs on the US' trading partners.
According to The Times, º£½ÇÊÓƵ Ambassador to the US Lord Peter Mandelson was reported to be "very focused" on securing an exemption for the º£½ÇÊÓƵ.
FTSE 100 pharmaceutical giants, with significant operations in the US market, have so far been spared from any tariffs. For AstraZeneca, 43 per cent of its 2024 revenues were derived from the American market.
Trump alleged that companies would justify the pricing of prescription drugs and pharmaceuticals by citing "research and development costs".
However, the President stated that "all of these costs were, and would be, for no reason whatsoever, borne by the "suckers" of America, ALONE."
