Trump Tells 17 Global Drug Firms To Cut Prices In US, Nifty Pharma Falls Amid Market Concerns

Key Highlights:

- Trump asked 17 global pharma giants to reduce drug prices in the US within 60 days.

- Nifty Pharma Index fell 2.45 percent, with major Indian drug stocks losing up to 4 percent.

- Indian pharma exports to the US could face pressure due to reduced pricing viability.

Mumbai: In a bold move, US President Donald Trump has written letters to 17 top global drug companies, asking them to reduce their medicine prices in the United States. The letter urged the companies to match US prices with those in other developed countries.

Even though no Indian pharma companies received the letter, Indian markets were affected, and pharma stocks saw heavy losses.

Nifty Pharma Index Drops Sharply

The impact of Trump’s letter was seen on the Nifty Pharma Index, which fell 2.45 percent during Friday’s intra-day trading. This was the third straight day of decline for the index.

Key pharma companies took a hit:

- Sun Pharma dropped 3.98 percent

- Aurobindo Pharma fell 3.42 percent

- Granules India lost 3.2 percent

Gland Pharma, Cipla, and Lupin were down 2–3 percent

What the Letter Says

The letter was sent to global pharma majors like Pfizer, Eli Lilly, and Novo Nordisk, among others. It asked these companies to:

- Cut drug prices in the US to match prices in Europe and other developed nations

- Start offering "Most Favoured Nation" (MFN) pricing within 60 days

- Sell some drugs directly to patients at insurer-negotiated prices

The letter warned that if companies did not act, the US government would use “every tool in our arsenal” to tackle high drug prices.

Why It Matters to India

Though Indian firms weren’t directly involved, industry experts believe such price cuts in the US could impact Indian drug exporters. India exports about USD 10 billion worth of drugs to the US each year, mostly branded generics, which already have low margins.

If prices are pushed even lower, exporting could become financially unviable for many Indian companies.

Earlier in May, Trump had made a similar demand, and experts had warned that India’s pharma industry may face pressure, even if it isn’t directly targeted.

(With IANS Inputs)