Trump's Bold Move: Pharma Price Cuts and Global Reactions

US President Donald Trump signed an executive order requiring drugmakers to lower prices, aligning with international rates. Grifols reported increased profits, while Novartis committed to providing malaria drugs despite funding cutbacks. Eli Lilly's obesity drug trials show promising results, and other pharma stocks reacted to the pricing order.

In a major policy shift, US President Donald Trump signed an executive order on Monday intending to reduce pharmaceutical prices. The order pushes drugmakers to align their prices with international rates, though experts predict implementation challenges. Six months after issuing the order, the administration plans to take additional steps if companies fail to make 'significant progress' toward the pricing goals.

Spanish drugmaker Grifols reported a nearly threefold increase in net profits compared to last year, underpinning its confidence in achieving full-year projections. Meanwhile, Swiss-based Novartis pledged to continue producing essential malaria drugs, even amidst global aid cuts, with a focus on maintaining accessibility for nations heavily reliant on these treatments.

The pharmaceutical sector experienced mixed reactions. While Trump's order initially caused a downturn, stocks later rebounded as analysts anticipated legal and practical implementation obstacles. Concurrently, Eli Lilly showcased promising outcomes from trials of their obesity medication, Zepbound, which outperformed Novo Nordisk's Wegovy, potentially expanding Lilly's influence in the lucrative obesity drug market.

(With inputs from agencies.)