Pharma Stocks Slump as Trump Demands Price Cuts from Drug Majors

The Nifty Pharma index dropped over 2% for the third consecutive day, led by a 3% decline in

ma, with Pharma, Gland Pharma, Cipla, Granules India, and Lupin each falling over 2%. The sell-off follows U.S. President Donald Trump’s letters to 17 major pharmaceutical companies, including Eli Lilly, Novo Nordisk, and Pfizer, demanding immediate price reductions for existing drugs and “Most Favored Nation” pricing for future medicines, aligning U.S. costs with lower prices in other developed nations. Trump’s letters, posted on Truth Social, set a 60-day ultimatum for compliance, threatening to “deploy every tool in our arsenal” to protect Americans from “abusive drug pricing” if companies fail to act. He also demanded that certain medicines be sold directly to patients at the same prices offered to third-party insurers. The move has sparked market unease, with global pharma stocks, including Indian firms, facing significant pressure amid fears of reduced profits and potential regulatory actions.