Amgen's Stock Slumps Amidst Regulatory Storm: Navigating Pharmaceutical Challenges

On May 14, shares of Amgen (AMGN) fell by 3.02%, marking a two-day decline of 4.54%. This downward trend saw the stock hit its lowest since January 2025 during intraday trading. The decline is indicative of broader challenges faced by the pharmaceutical sector, particularly amidst changing policies and market dynamics.

In the lead-up to this drop, prior reports from May 12 highlighted a significant pre-market downturn in the U.S. pharmaceutical stocks, where Amgen, along with companies like Viking Therapeutics and Eli Lilly, experienced notable declines. The sectorwide decrease has raised eyebrows among investors, who are closely monitoring industry reactions to potential shifts in drug pricing policies.

Adding to the complexity, recent political developments have also impacted market sentiments. President Trump announced on social media his plans to sign an executive order to significantly reduce prescription and drug prices. The anticipated cost reduction ranges from 30% to 80%, aligning U.S. drug prices with those in the lowest-cost countries globally. This announcement has undoubtedly injected uncertainty into the pharmaceutical market, as companies brace for possible financial repercussions.

Amgen's recent stock performance reflects broader industry anxieties amid regulatory pressures, which may influence future strategic decisions within pharmaceutical firms looking to navigate these challenging tides. Investors will be watching closely to see how Amgen and its peers respond to these potentially transformative regulatory changes.