Trump’s “Most-Favored-Nation” Drug Order Stirs Volatility in Global Pharma

Global pharmaceutical shares opened mixed on Monday after President Trump signed an executive order to cut U.S. prescription drug prices by 30%-80%—aligning them with the lowest prices paid in other high-income countries. While U.S. drugmakers recovered losses as the market had largely anticipated the move, European and Asian names trading heavily on U.S. revenues saw renewed swings.

Order Details & Market Reaction

• “Most-Favored-Nation” Pricing: Forces Medicare Part B and D to pay no more than the lowest price any comparable nation pays for the same drug.

• Trump's Rationale: U.S. has <5% of global population but generates ~75% of Big Pharma's revenues.

• Immediate Impact:

  • Novo Nordisk (NVO): -1% at open, recovered later

  • Eli Lilly (LLY): Flat on the day, off session lows

  • U.S. Innovators (BMY, PFE, MRK): +2%-4% following the open as the move was widely telegraphed

Industry Commentary & Legal Hurdles

Analysts at Vital Knowledge warn:

“It's unclear if the order covers all government sales or just select programs[,] and it will face significant legal and political pushback. This aggressive move is broadly negative for the pharma/biotech sector.”

Tracking Analyst Sentiment Shifts

As brokers reassess price targets and recommendations, you can monitor real-time rating changes for major drugmakers—both U.S. and global—using the Bulk Ratings API, which aggregates upgrades and downgrades across the pharmaceutical universe:
See Live Pharma Analyst Rating Changes

What to Watch Next

1. Regulatory Clarifications: HHS and CMS guidance on which drugs and purchase programs are covered will be critical.

2. Legal Challenges: Lawsuits from industry groups could delay implementation and influence stock swings.

3. Earnings Commentary: Q2 calls will reveal management's updated pricing, volume, and margin assumptions—key for forecasting 2025 guidance.

By combining real-time analyst rating feeds with upcoming regulatory milestones, investors can navigate the heightened volatility and identify which pharmaceutical franchises are best positioned to withstand the pricing overhaul.