US Pharma stocks Pfizer, Amgen, Merck & Co. jump over 3% on early Wall Street after Trump cut drug prices

US Stocks Today: Pharmaceutical companies like Pfizer, Amgen, and Merck & Co. shares jumped more than 3 per cent at the Wall Street open on Monday, May 12, after the US President announced that he would cut drug prices by 59 per cent for sale inside America. 

Pharma Stocks in US

Pharmaceutical stocks like Pfizer Inc., Amgen Inc., Johnson & Johnson, Eli Lilly & Co., and Merck & Co. Inc. jumped on Monday, after US markets opened after Trump's announcement.

Pharma giant, Pfizer's shares jumped 3.3 per cent to hit the intraday high of $23.02 as of the early Wall Street session. The stock is now trading 2.92 per cent higher at $22.94 in Monday's market, compared to $22.28 in the previous US market close.

Amgen Inc. shares gained 3.8 per cent to reach the daily high of $275.99 at the market open. The shares are now trading 3.12 per cent higher at $274.16 in Monday's market, compared to $265.86 in the previous market close. 

Johnson & Johnson shares are trading 0.54 per cent higher at $155 on Wall Street early session, compared to $154.22 at the previous US market close. The shares hit an intraday high of $155.36 on Monday.

Eli Lilly & Co. shares after trading with moderate gains in the early market session, jumped on the US stock market. The shares are currently trading 2.37 per cent higher at $751.23 as of 12:07 p.m. (EDT), compared to $734.57 at the previous market session.

Merck & Co. Inc. shares jumped 5.06 per cent to hit the intraday high of $79.82 on Monday's Wall Street session. The shares are currently trading 4.99 per cent higher at $79.78 as per 12:09 p.m. (EDT), compared to $75.97 at the previous market close. 

Pharma Price Cuts

US President Donald Trump on Monday, May 12, signed an executive order and set a 30 day deadline for US drugmakers to lower the cost of the prescription drugs in the United States or face the new limits as per the government mandates, reported the news agency AP.

Trump ordered the health department to act as a broker of the new drug prices in the US. In case the companies do not reach an agreement, the US government will implement a new rule which will tie the price of the drugs to what US pays for medication to lower prices paid by other nations.

“We’re going to equalize,” Trump said at the press briefing. “We’re all going to pay the same. We’re going to pay what Europe pays,” he said.

Earlier on Monday, in a Truth Social post, Trump said that he is reducing prescription drug prices by 59 per cent.

“DRUG PRICES TO BE CUT BY 59%, PLUS! Gasoline, Energy, Groceries, and all other costs, DOWN. NO INFLATION!!! LOVE, DJT,” said Donald Trump in his post on Truth Social.

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