India Pharma Shares Plunge Ahead of US Drug Price Cuts

Experts suggest Indian generic drug makers will face fewer disruptions than US innovators

- Jessica Jani

President Donald Trump on Monday signed an executive order, asking drugmakers to cut prices to match those paid by other rich nations.

The US government will give pharmaceutical companies price targets in the next 30 days and will take further action to lower prices if firms do not deliver "significant progress." In a press conference, Trump said that he was seeking cuts between 59% and 90%.

This is higher than what Trump had initially sought.

Trump on Sunday said in a post on Truth Social that he would sign an executive order Monday morning to bring down the prices of prescription drugs by 30% to 80%. In another post, he vowed to slash prices by 59%. He said the objective is for the US to pay the same price as the nation that pays the lowest price for a drug anywhere in the world.

Shares of Indian pharma companies plunged up to 6% on Monday after Trump's price cut proposal for prescription drugs in the US, although experts said Indian companies may not be affected significantly.