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Asia’s pharma stocks drop as Trump plans US drug price cutsJapanese drugmaker Chugai Pharmaceutical Co. dropped as much as 7.2% in early Tokyo trade, the most in a month, with peers Daiichi Sankyo Co. and Takeda Pharmaceutical Co. losing around 5%.By Bloomberg  May 12, 2025, 6:59:40 AM IST (Published)2 Min ReadShares of Asian pharmaceutical companies fell after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in-line with other countries.

Japanese drugmaker Chugai Pharmaceutical Co. dropped as much as 7.2% in early Tokyo trade, the most in a month, with peers Daiichi Sankyo Co. and Takeda Pharmaceutical Co. losing around 5%. In South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all fell over 3%.

The declines come after Trump said on social media he intends to sign an executive order lowering the price of prescription medicines at 9 a.m. on Monday in Washington, after reports emerged of the plan last week. The announcement is pressuring drug-related stocks, on worries their profits will take a hit if they have to reduce prices in the US.

Although the feasibility of Trump’s plan is “questionable,” his announcement is negative for the pharmaceutical sector, Hidemaru Yamaguchi, a healthcare sector analyst at Citigroup Global Markets Japan Inc., wrote in a note.

Firms that depend on the US for a large chunk of sales, including Japan’s Takeda, Astellas Pharma Inc. and Otsuka Holdings Co., are especially vulnerable, he added. Shares of Astellas and Otsuka were also lower on Monday.Continue ReadingCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsasia