Novo Nordisk shares fell 6%, AstraZeneca shares fell 3.3% after Trump sought price cuts

Novo Nordisk shares fell 6%, AstraZeneca shares fell 3.3% after Trump sought price cuts

New York, July 2, 2025 — President Donald Trump's latest push to lower prescription drug prices in the United States has sent shockwaves through the pharmaceutical industry, leading to significant declines in stock prices for major players like Novo Nordisk and AstraZeneca.

Novo Nordisk Shares Plummet
Novo Nordisk shares fell by 6% on Thursday, July 31, following Trump's demand that the company slash its U.S. prices to match those paid in other countries. The company received a downgrade from HSBC and other analysts, which contributed to the drop in its stock price. Trump's letters to the company, along with other major pharmaceuticals, demanded immediate price reductions for existing drugs and guaranteed future medicines at prices comparable to those in other countries. Additionally, companies were required to repatriate excess overseas revenue to the U.S. [2]

AstraZeneca Shares Decline
AstraZeneca shares fell by 3.3% on Thursday, July 31. The company reported strong earnings for the second quarter, but the impact of Trump's demands on drug pricing weighed on investor sentiment. AstraZeneca has been focusing on expanding its U.S. presence and pipeline, aiming to reach $80 billion in annual revenue by 2030. However, the new pricing pressures could potentially affect its financial projections. [3]

Trump's Demands
Trump sent letters to the chief executives of 17 major pharmaceutical companies, including Novo Nordisk and AstraZeneca, demanding immediate action to lower drug prices. He called for companies to extend most-favored-nation pricing to Medicaid, guarantee such pricing for new drugs, and return excess overseas revenue to American patients and taxpayers. Companies were given until September 29 to respond with binding commitments to these terms. Trump has threatened to use government measures to enforce these demands if companies do not comply voluntarily. [4]

Market Reactions
The pharmaceutical sector as a whole reacted negatively to Trump's demands, with the NYSE Arca Pharmaceutical Index falling 3% on Thursday. Shares of Pfizer, Eli Lilly, and Gilead Sciences also declined by about 2% each. The market is closely watching how these companies will respond to Trump's demands and the potential impact on their financial performance. [5]

Future Implications
The long-term effects of Trump's pricing demands on the pharmaceutical industry remain uncertain. Companies may face increased regulatory scrutiny and potentially higher costs if they are unable to pass on the price reductions to consumers. However, some analysts suggest that these measures could lead to increased access to affordable medicines for Americans. [1]

References:
[1] https://finance.yahoo.com/news/trump-demands-largest-pharma-companies-180512353.html
[2] https://www.marketscreener.com/news/novo-nordisk-gets-fda-approval-for-alhemo-ce7c5fd2da8eff22
[3] https://uk.investing.com/news/earnings/astrazeneca-trumps-q2-forecasts-keeps-outlook-amid-pricing-trade-pressures-4188205
[4] https://www.reuters.com/business/healthcare-pharmaceuticals/trump-pressures-17-pharma-ceos-cut-us-drug-prices-2025-07-31/
[5] https://economictimes.indiatimes.com/news/international/global-trends/trump-pressures-17-pharma-ceos-to-cut-us-drug-prices/articleshow/123035686.cms