European pharmaceutical companies, including Novo Nordisk (NVO, Financial), Roche, Novartis (NVS), AstraZeneca (AZN), GlaxoSmithKline (GSK), and Sanofi (SNY), are grappling with significant challenges due to U.S. policy changes under President Trump and Health Secretary nominee Robert F. Kennedy Jr. Their combined market value has dropped by $86 billion, a 6% decline, contrasting with a 2% decline for major U.S. pharma companies.
Kennedy's skepticism towards pharmaceutical companies, particularly regarding vaccines, raises concerns. His proposals to limit drug prices in the U.S. could negatively impact European firms, as they often subsidize research and offer lower prices overseas. Additionally, potential U.S. import tariffs threaten their profitability, given that the EU exports 33% of its pharmaceuticals to the U.S.
To mitigate these risks, European firms are considering increasing their U.S. presence through manufacturing and acquisitions. For instance, Novo Nordisk plans to acquire Catalent (CTLT) to leverage its North American facilities.
