Pharma stocks tumble on Trump's plan to cut US drug costs

Shares of pharmaceutical firms fell across the world after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in line with those of other countries, prompting concern that profits would take a hit.

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TOKYO -

Shares in US drugmakers were weaker, with Eli Lilly & Co, Pfizer, Bristol-Myers Squibb and Merck & Co all down in pre-market trading in New York.

European drugmakers including Novo Nordisk, AstraZeneca and Roche Holding slid, missing out on a broader rally, while in Asia, the pharmaceuticals subgroup in Japan's Topix Index posted its biggest one-day loss since last August.

In South Korea, SK Biopharmaceuticals, Celltrion and Samsung Biologics all fell over 3 per cent. In Hong Kong, BeiGene tumbled as much as over 5 per cent and Innovent Biologics fell 3.7 per cent.

Indian pharmaceutical stocks dropped 1.6 per cent on May 12, in contrast with broader market gains as India reached and held a ceasefire with Pakistan over the weekend after four days of cross-military strikes.

Several Indian drugmakers earn a significant share of their revenue from North America by selling low-cost generic versions of newer drugs.