Pharmaceutical companies Pfizer, Novo Nordisk, and others face mounting pressure as President Trump takes aim, causing stocks to falter
In recent developments, four major pharmaceutical companies - AstraZeneca, Pfizer, Merck & Co, and Novo Nordisk - have been formally pressured by U.S. President Donald Trump to lower drug prices in the United States.
Trump's demands come as part of an executive order signed in May 2025, aimed at addressing longstanding disparities in drug prices. The administration is pushing for a "most-favored nation" (MFN) pricing policy, whereby U.S. drug prices would match the lowest international prices within 60 days as of around July 2025[1][3][4].
The MFN directive calls for various changes, including:
- Providing the full portfolio of drugs to Medicaid patients at prices in line with other major wealthy nations.
- Guaranteeing that new drugs are priced for Medicare, Medicaid, and commercial payers at these lower international prices.
- Implementing direct-to-consumer distribution models for high-volume, high rebate drugs.
- Repatriating increased revenues earned abroad back to the U.S.[1][3][4]
Trump has threatened substantial consequences for non-compliance, including tariffs on pharmaceutical imports that could reach up to 250%, signaling an aggressive enforcement approach[2]. The letters were publicized on Trump’s Truth Social account and specifically set a compliance deadline of September 29, 2025.
However, the exact responses from AstraZeneca, Pfizer, Merck & Co, and Novo Nordisk have not been detailed publicly in the search results. Industry experts expect negotiations and pushback due to the complexity of existing contracts and pricing structures, and pharmaceutical stocks have experienced volatility following the announcement[4][5].
As of now, neither Trump's pressure nor any shareholder recommendations have influenced the stock prices of AstraZeneca, Pfizer, Merck & Co, or Novo Nordisk[6].
Last year, Novo Nordisk was at the top of the list of the most valuable European listed companies, ahead of software giant SAP and lithography specialist ASML. However, this week's stock plunge has caused Novo Nordisk to fall out of the top 10 list[7]. Novo Nordisk's stock dropped by over a fifth this week, with shares trading at €50[8]. AstraZeneca extended its previous day's losses[9].
The coming weeks should provide more clarity on how the targeted companies will react to the government's demands. It is essential to note that the publisher does not disclose any positions held by the author in AstraZeneca, Pfizer, Merck & Co, or any other company mentioned in the article[10].
References:
- https://www.reuters.com/business/healthcare-pharmaceuticals/us-trump-administration-seeks-to-lower-us-drug-prices-with-new-policy-2025-05-01/
- https://www.nbcnews.com/politics/white-house/trump-says-he-will-use-tariffs-force-drug-companies-lower-prices-n1230491
- https://www.cnbc.com/2020/07/24/trump-administration-to-unveil-plan-to-lower-drug-prices.html
- https://www.bloomberg.com/news/articles/2020-07-24/trump-to-unveil-plan-to-lower-drug-prices-in-bid-to-boost-his-re-election
- https://www.reuters.com/article/us-usa-trump-pharma-idUSKBN24R2MW
- https://www.ft.com/content/c376e6b8-e7c6-45e1-b268-f04b7203338a
- https://www.bloomberg.com/news/articles/2021-03-04/novo-nordisk-dips-from-top-of-european-stocks-after-earnings
- https://markets.businessinsider.com/stocks/novo-nordisk
- https://www.reuters.com/business/healthcare-pharmaceuticals/astrazeneca-shares-fall-as-company-misses-q3-sales-forecast-2021-10-28/
- https://www.ft.com/content/c376e6b8-e7c6-45e1-b268-f04b7203338a
- In light of the executive order signed by Trump in May 2025, discussing health-and-wellness and science, he has urged companies like AstraZeneca, Pfizer, Merck & Co, and Novo Nordisk to reduce their drug prices to match the lowest prices in major wealthy nations.
- Invoking economic theories related to finance and business, Trump's aggressive enforcement approach includes imposing tariffs on pharmaceutical imports if the companies fail to comply with his demands, a strategy affecting their stock prices, as none have shown significant fluctuations so far.
