Shares of major Asian pharmaceutical companies fell sharply Monday after US President Donald Trump announced plans to sign an executive order cutting US prescription drug prices to align with international levels.
Japan’s drug sector was the worst performer on the Topix, dragging down the broader index despite optimism over US–China trade talks. Chugai Pharmaceutical dropped up to 7.2%, while Daiichi Sankyo and Takeda lost around 5%. In South Korea, SK Biopharmaceuticals, Celltrion, and Samsung Biologics each fell over 3%. Hong Kong-listed BeiGene tumbled over 5%, and Innovent Biologics dropped 3.7%.
Analysts say the announcement, despite limited details, raised fears of reduced US revenues. Firms like Takeda, Astellas, and Otsuka—which depend heavily on US sales—are seen as especially vulnerable.
While the feasibility of Trump’s plan is still in question, experts warn a renewed effort to cap drug prices, especially under Medicare and Medicaid, could significantly hit industry revenues.