European pharmaceutical stocks have plunged to their lowest level in three months following renewed threats of US tariffs under a potential second Trump presidency. The sector-wide sell-off reflects growing investor anxiety over transatlantic trade tensions.
Market Turmoil Grips Pharma Sector
Leading drugmakers including Novartis, Roche and AstraZeneca saw significant share price declines in Wednesday trading. The Stoxx Europe 600 Pharmaceuticals index dropped 2.3%, marking its weakest performance since May.
Investors Brace for Trade War Impact
Analysts attribute the slump to comments from Trump campaign advisors suggesting European pharmaceutical imports could face 10-15% tariffs if the former president returns to office. "The market is pricing in potential supply chain disruptions and margin pressures," noted Barclays healthcare analyst Emily Fletcher.
Sector-Specific Concerns Emerge
The sell-off particularly affected companies with:
- Large US market exposure
- Complex transatlantic supply chains
- High-margin biologic drugs vulnerable to pricing pressures
Swiss firms Novartis and Roche, which derive over 40% of sales from North America, were among the hardest hit.
Broader Market Implications
The pharma slump contributed to wider European market weakness, with the FTSE 100 closing 0.8% lower. "This could be the canary in the coal mine for EU-US trade relations," warned HSBC strategist Michael Pearson.
Investors are now closely watching for:
- Further policy signals from Trump campaign
- EU contingency planning
- Pharma company mitigation strategies
