Sanofi Stock Plunges 3.11% on Trump's Drug Price Cuts

On May 12, 2025, Sanofi's stock experienced a significant drop of 3.11% in pre-market trading, reflecting broader market concerns and potential regulatory changes.

US President Donald Trump's announcement of plans to cut prescription drug costs in the US by up to 80% has sent shockwaves through the pharmaceutical industry. This move, aimed at aligning US drug prices with those in other countries, has raised concerns about potential profit reductions for pharmaceutical companies, including Sanofi.

Trump's executive order, expected to be signed on Monday, is anticipated to target Medicare, Medicaid, and some hospitals. Industry analysts, such as Stefan Schneider from Bank Vontobel, have expressed concerns about the potential negative impact on the sector, predicting that the plan could face legal challenges from pharmaceutical companies.

Sanofi, along with other European drugmakers like Novo Nordisk, AstraZeneca, and Roche, generates a significant portion of its revenue in the US. The potential reduction in US drug prices could have a substantial impact on these companies' financial performance, as the US market is a key driver of growth and innovation in the pharmaceutical industry.