From Yahoo Finance: 2025-05-12 11:25:00

Pharma companies saw stocks drop as President Trump signed an order to lower drug prices. Eli Lilly’s stock fell 2% despite its weight loss drug beating a competitor in a study. Trump promised a 30-80% price reduction in drug prices with a new policy, causing mixed reactions in the market.

Trump’s executive order aims to reduce drug prices by 59% by applying a “Most Favored Nations Policy.” Americans pay significantly more for drugs than other countries, with prices like $600 per month for Ozempic in the U.S. compared to $92 in the U.K. and $59 in Germany. Stocks in the pharma industry responded with mixed results.

A surprise trade agreement between the U.S. and China sent the stock market soaring, with major indexes up over 2.5%. However, pharmaceutical stocks didn’t benefit from the rally after Trump announced plans to lower drug prices. Johnson & Johnson, Novartis, and Novo Nordisk saw declines, while Pfizer saw a rare increase.

Read more: Eli Lilly stock sinks as pharma misses out on the market rally