Sun Pharma shares fall up to 7% after Trump plans to cut prescription drug prices by up to 80%

India's drugmakers will be in focus yet again on Monday, May 12, after the latest post by US President Donald Trump on his social media platform "Truth Social."

Trump wrote on Truth Social that he plans on signing an executive order at 9 AM Washington time on Monday, which will bring down the costs of prescription and pharmaceutical drugs between 30% to 80% with immediate effect.

The US President also said that he will be instituting a most favoured nations policy, “whereby the United States will pay the same price as the Nation that pays the lowest price anywhere in the World.” Healthcare costs in the US “will be reduced by numbers never even thought of before,” he said.

The move is likely to be aimed at innovative and branded drugs, although generic drugs in the US help bring down prices of post patent drugs but as much as 80% to 90%.

For example, if innovative drug prices reduce, generic drug prices will be lower during the period of limited competition. Experts say that one will need to see how the policy is structured.

Trump had also finalised a "Most Favoured Nation" during his first term in 2020, but it was blocked by the courts. The policy would have applied to Medicare Payments for certain drugs.

The other factor that the industry is watching out for is the imposition of tariffs on drug imports in to the US, on which clarity is still awaited. Trump had earlier highlighted that Pharma tariffs will be at "never seen before levels."

The Nifty Pharma index has remained flat over the last one month, but is down 10% so far in 2025.