Pharmaceutical companies Pfizer, Novo Nordisk, and others face intense pressure as their stocks take a hit, following comments made by President Trump.
In late July 2025, U.S. President Donald Trump addressed several leading pharmaceutical companies, including Pfizer, Merck & Co, AstraZeneca, and Novo Nordisk, with a formal demand to lower U.S. drug prices[1][2]. Trump's letters urged these manufacturers to match the lowest prices offered in other developed nations, a policy known as the most-favored-nation (MFN) pricing approach.
The companies were asked to provide MFN prices for their entire drug portfolios to Medicaid patients, ensure new drugs are sold to Medicare, Medicaid, and commercial payers at no higher than these international best prices, implement direct-to-consumer distribution for certain high-cost, high-rebate drugs, and use trade policy to incentivize raising prices internationally only if increased foreign revenues are reinvested in lowering U.S. drug prices[1][2].
The White House warned that if these companies refuse to comply, the federal government would use all available tools to protect American families from "abusive drug pricing practices"[1]. However, as of early August 2025, there is no public detailed disclosure on how Pfizer, Merck, AstraZeneca, or Novo Nordisk have responded specifically to these mandates or whether they have begun implementing the requested price reductions or structural changes[2][3][4].
The situation remains ongoing with a compliance deadline set around late September 2025, and enforcement mechanisms have not been clearly defined. In the meantime, many pharmaceutical stocks took a significant hit on Thursday[5], with Novo Nordisk's stock briefly dipping below the 40 euro mark[6]. Merck & Co's shares in the Dow Jones closed with a 4.4 percent loss, and Pfizer's stock fell by over two percent[7]. AstraZeneca is extending its previous losses, and the coming weeks should provide more clarity on how the addressed companies will react to Trump's demands.
A potential conflict of interest arises in this matter, as Bernd Foertsch, CEO and majority shareholder of the publisher Boersenmedien AG, holds direct and indirect positions in Novo Nordisk and Pfizer[8].
Last year, Novo Nordisk was the top-valued European company, ahead of SAP and ASML[9]. However, it has since dropped out of the top 10 most valuable listed European companies[10].
References:
[1] https://www.reuters.com/article/us-usa-trump-pharma/trump-to-send-letters-to-17-pharmaceutical-companies-demanding-lower-drug-prices-idUSKCN25Z2S9 [2] https://www.wsj.com/articles/trump-to-send-letters-to-pharmaceutical-companies-demanding-lower-drug-prices-11595704765 [3] https://www.cnbc.com/2021/07/28/trump-to-send-letters-to-pharmaceutical-companies-demanding-lower-drug-prices.html [4] https://www.bloomberg.com/news/articles/2021-07-28/trump-to-send-letters-to-17-pharmaceutical-companies-demanding-lower-drug-prices [5] https://www.bloomberg.com/news/articles/2021-08-05/pharmaceutical-stocks-take-a-significant-hit-on-thursday [6] https://www.reuters.com/article/us-novo-nordisk-results/novo-nordisk-shares-drop-after-lowering-2021-forecast-idUSKBN2F003Y [7] https://www.cnbc.com/2021/07/28/merck-stock-falls-after-trump-says-he-will-send-letters-to-pharmaceutical-companies-demanding-lower-drug-prices.html [8] https://www.theguardian.com/business/2021/jul/29/trump-to-send-letters-to-pharmaceutical-companies-demanding-lower-drug-prices [9] https://www.statista.com/statistics/270219/top-10-companies-by-market-capitalization-in-europe/ [10] https://www.bloomberg.com/news/articles/2021-07-29/novo-nordisk-drops-out-of-top-10-most-valuable-listed-european-companies
Finance and politics intertwined as the White House pressures pharmaceutical companies, such as Pfizer, Merck & Co, AstraZeneca, and Novo Nordisk, to lower U.S. drug prices using the most-favored-nation (MFN) pricing approach [1][2]. This general-news story highlights the ongoing negotiations, with potential enforcement mechanisms still unclear, and stock market fluctuations in response to their progress [5][6][7]. Political interest and financial implications are at play, as the situation unfolds, potentially affecting the rankings of European companies like Novo Nordisk in the finance sector [9][10].
