American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Latest News

European pharma stocks fall on Wednesday ahead of ‘Liberation Day’ announcements: what’s at stake?

by admin April 2, 2025
April 2, 2025

European healthcare stocks fell sharply on Wednesday as investors braced for potential tariffs on the pharmaceutical industry, a sector that had largely been spared from previous rounds of trade levies.

US President Donald Trump, who has dubbed the new wave of tariffs “Liberation Day,” is expected to announce fresh measures later in the day, raising concerns about their impact on global drugmakers.

Trump said last month that he planned to announce car tariffs “very shortly” and then “we’ll be announcing pharmaceuticals at some point in the not too distant [future] because we have to have pharmaceuticals.”

The STOXX 600 Healthcare index dropped 2.5% in early trading, reaching its lowest level since December.

The broader European market also came under pressure, with the benchmark STOXX 600 index declining by 0.9%.

“This might be a reaction to the tariff announcements expected today from the US administration, which this time could focus on the pharmaceutical sector,” an analyst said.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the losses reflected growing anxiety over the tariffs.

“It’s not surprising that pharma stocks have been caught up in this wave of nervousness,” Streeter said, adding that investors are on “tenterhooks” as the clock ticks down to what’s expected to be the biggest wave of tariffs on US trading partners.

It’s been dubbed Liberation Day by President Trump, but it’s more like entrapment day, with more countries set to be tangled up in a web of fresh duties.

Major pharmaceutical stocks slide due to fears of Trump tariffs

Shares of major European pharmaceutical companies were hit hard as fears over tariffs intensified.

Germany’s Bayer slumped 4.7%, while France’s Sanofi declined 3.3%. Swiss drugmakers Lonza and Novo Nordisk both lost around 2.7%.

Other major healthcare firms, including Novartis, Roche, and Merck, fell between 1.6% and 2.7%.

UK-based AstraZeneca, as well as Bavarian Nordic, GSK, and UCB, recorded losses between 2.5% and 3.7%.

Analysts warned that if Trump moves ahead with tariffs on the sector, pharmaceutical companies could face significant cost increases.

Many drugmakers manufacture key ingredients and components in overseas markets before assembling final products in the US

Industry lobbies for gradual tariff rollout

Until now, pharmaceuticals had been largely exempt from Trump’s aggressive trade measures.

However, reports indicate that the White House is preparing to impose duties on drug imports as part of its broader push to reduce the US trade deficit.

Industry executives are now urging the US government to implement any tariffs in phases, allowing companies time to shift production closer to their largest market.

Reuters reported on Tuesday that pharmaceutical lobbyists were in discussions with administration officials about delaying the levies.

While a formal announcement may not come immediately, sources familiar with the talks said the tariffs were likely unavoidable.

The uncertainty is already weighing on the sector, with companies warning that investment plans and product launches could be delayed.

“When you bring tariffs, it drives uncertainty, and when you’re uncertain, you pause,” Ester Baiget, CEO of Danish biotech firm Novonesis told CNBC on Tuesday.

“You pause innovation, you pause launches, you pause investments.”

With global markets on edge, investors will be closely watching Trump’s next move and its potential ripple effects on the pharmaceutical industry.

How tariffs could impact Novo Nordisk’s obesity and diabetes treatments

Denmark stands as one of Europe’s leading pharmaceutical and biotech hubs, home to major companies such as Novo Nordisk, the maker of Wegovy, and Bavarian Nordic, a vaccine producer—both of which have significant exposure to the US market.

Novo Nordisk’s chairman, Helge Lund, told CNBC last week that the company was not engaging in speculation ahead of Trump’s tariff announcement, instead emphasizing the importance of adaptability.

“It doesn’t make a lot of sense to speculate too much,” Lund said at the Danish pharmaceutical giant’s Annual General Meeting. “We are laser-focused on what we can impact.”

However, uncertainty lingers over how potential tariffs could affect US sales of Novo’s widely popular obesity and diabetes treatments, as well as the potential consequences for its American rival, Eli Lilly, which produces Zepbound.

Lund declined to comment on what proportion of the company’s weight-loss drug sales come from its US plants, instead highlighting Novo Nordisk’s “very significant” manufacturing presence in the country.

The post European pharma stocks fall on Wednesday ahead of ‘Liberation Day’ announcements: what’s at stake? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Russia tightens control over oil exports with new port restrictions at Novorossiisk
next post
Here’s how Trump tariffs were calculated and why experts are raising concerns with the methodology?

Related Posts

Venezuela’s investment climate worsens amid political and economic...

September 22, 2024

Putin’s summer residence gets new air defenses as...

July 19, 2024

Brazil’s gross public debt drops to 75.3% of...

March 15, 2025

The US economy keeps growing, but for how...

December 22, 2024

Two Chinese fishermen drown during pursuit by Taiwan...

February 16, 2024

Hungary’s Orban says Russia stands to gain as...

July 29, 2024

Hundreds of candidates drop out of French election...

July 3, 2024

Chile’s housing boom drives 1.1% CPI jump in...

February 8, 2025

Germany’s sharpest downturn in seven months drags Eurozone...

September 23, 2024

‘Their tactics have changed’: Russia’s bid to blow...

April 15, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,032)
    • Investing (2,462)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved