Pharma stocks traded higher on May 13 after better-than-feared Donald Trump’s executive order on pharma last night.
Earlier on May 12, the US President announced a push to lower domestic drug prices between 30 to 80 percent. He later said the quantum of the reduction would be 59%.
"Drug prices to be cut by 59%" Trump wrote in capital letters on his social media platform. On Sunday, Trump said he would sign an executive order to pursue what is known as "most favored nation" pricing or international reference pricing.
Ajanta Pharma was the top gainer on Nifty Pharma by trading 4% higher at Rs 2,584 apiece, followed by Granules, whose shares rose 3.72% to Rs 477 apiece.
Shares of Aurobindo Pharma and Glenmark were trading 3.4% and 3% higher at Rs 1,247 and Rs 1,423 apiece, respectively.
Sun Pharma stock was trading 0.64% higher while the shares of Dr Reddy's Laboratories were quoting 2% higher at Rs 1,220 apiece.
Macquarie Capital said Trump's executive order on pharma last night is a lot more diluted versus what was proposed in September 2020, reported CNBC-TV18.
On May 13, Nifty Pharma index was trading 1.3% higher while the benchmark indices were trading nearly 1% lower.
Meanwhile, shares of major drugmakers in US, after initially falling during premarket trading, rallied on Monday along with the broader market. Shares of Merck & Co closed up 5.8%, while Pfizer gained 3.6% and Gilead Sciences finished up 7.1%. Eli Lilly, the world's largest drugmaker by market value, rose 2.9%.
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