Trump’s Plan to Slash US Drug Prices Sparks Turmoil in Asian Pharma Markets

Trump’s latest move to lower prescription drug costs in the United States has triggered a sharp sell-off in Asian pharmaceutical stocks

ContentsOrder aims to enforce lower pricing standardsAsian markets react to policy uncertaintyLegal concerns and industry response remain unclearThe former president announced on May 13 that he would sign an executive order significantly reducing drug prices, sending ripples through global markets and raising concerns within the healthcare sector.

Order aims to enforce lower pricing standards

Trump posted on Truth Social that the order would immediately reduce prices by 30 to 80 percent. The proposed policy introduces a “most favoured nation” pricing rule, ensuring the U.S. pays no more than the lowest global price for the same medication. Trump criticized pharmaceutical companies for inflating prices and dismissed claims that high drug costs are necessary to fund research and development.

He emphasized that political donations from the industry would not influence his decision, asserting that his administration is prepared to take on a sector that has burdened American consumers for too long. The executive order revives an initiative that failed during his first term due to industry resistance and opposition within his own party.

## Asian markets react to policy uncertainty

Shares of major pharmaceutical companies across Asia fell following Trump’s announcement. Japan’s Chugai Pharmaceutical dropped by 7.2 percent, marking its steepest decline in a month. Daiichi Sankyo and Takeda Pharmaceutical both recorded losses near 5 percent. In South Korea, SK Biopharmaceuticals, Celltrion, and Samsung Biologics each fell more than 3 percent.

Analysts noted that firms with high exposure to U.S. markets are most at risk. Takeda, Astellas Pharma, and Otsuka Holdings saw their stock prices slip. The prospect of reduced American revenues raised concerns that other nations may push for more arduous negotiations, potentially squeezing profit margins worldwide.

Legal concerns and industry response remain unclear

Citigroup analyst Hidemaru Yamaguchi remarked that the legal basis for the executive order is uncertain but acknowledged the development as a negative signal for the sector. The Pharmaceutical Research and Manufacturers of America, which led past opposition efforts, did not comment.

The full text of the order has not yet been made public, and pharmaceutical executives are expected to examine the language closely to assess possible legal challenges. Market observers in the U.S. and abroad are watching to see whether the policy will hold or face setbacks in court.