Pharma
Note: This is a daily stock update and the information stands true as of 30/09/25, 09:00 CET.
Company Update:
Expert Opinion:
This is actually good news for the sector and one can hope that more Pharma companies will strike similar deals. This could alleviate the perception of the sector which has been hammered by the threats (and actions) by the US government. While the sector isn't out of the woods yet, it may provide a relief rally. Novo Nordisk could potentially benefit from a shift in sentiment as it is down 43% YTD.
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Company Update:
A major development that provides some clarity on the US drug pricing front. The US government has inked an agreement with Pfizer to lower drug prices and sell directly to patients, a move that is likely to be followed by other pharma companies as well. Consequently, Pfizer would reduce its drug prices by 50-80% vs. the list price. In return, Pfizer would get a three-year grace period from the US tariffs. Moreover, the US government would negotiate with other developed countries to increase the drug prices it pays to pharma companies.
This appears to be a win-win deal for three parties – the patients, the US government, and even the pharma companies (since most of them already provide discounts to the tune of 40-50% on their list prices to PBMs (pharmacy benefit managers)). The losing parties are likely to be the middlemen PBMs (which currently negotiate discounts with pharma companies and pocket a certain portion of those discounts) and the developed nations, if they agree to raise medicine prices.
Since pricing has been one of the major overhangs on the pharma sector, the shares of most of the US Big Pharmas ended up 4-6% yesterday, and we expect a similar reaction for the European Big Pharmas as well.
This is actually good news for the sector and one can hope that more Pharma companies will strike similar deals. This could alleviate the perception of the sector which has been hammered by the threats (and actions) by the US government. While the sector isn't out of the woods yet, it may provide a relief rally. Novo Nordisk could potentially benefit from a shift in sentiment as it is down 43% YTD.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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