“Given the lack of detail, the potential that only a limited number of drugs may actually be affected and the risk that wide-ranging prices rises could backfire politically, we would refrain from cutting pharma exposure in response to the announcement,” said Wolf von Rotberg, equity strategist at Bank J. Safra Sarasin.
European stocks gained as investors were unmoved by President Donald Trump’s plans to slap tariffs on patented drugs.
The Stoxx Europe 600 Index rose 0.4% as of 9.27am in London. The healthcare sector erased earlier losses to gain 0.1% after Trump said he plans a 100% duty on patented drugs effective Oct 1, unless the producer is building a manufacturing plant in the US. Novo Nordisk A/S fell 1.3% and Zealand Pharma A/S retreated 2%.
