Novo Nordisk sinks on guidance cut
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Wall Street Journal
10 minutes ago
- Wall Street Journal
Global Stocks to Watch: Novo Nordisk, AXA, Daimler Truck
↘️ Novo Nordisk (DK:NOVO.B), AstraZeneca (UK:AZN): European pharma stocks fell after President Trump wrote to 17 companies asking them to lower drug costs for U.S. consumers to the lowest price offered in other developed nations. ↘️ AXA (FR:CS): A stronger euro weighed on the French insurer's first-half profit, sending shares more than 6% lower. The euro has strengthened about 10% against the dollar this year. ↘️ Daimler Truck (XE:DTG): The bus and truck maker cut full-year guidance for the second time in as many quarters, citing continued market uncertainty in North America. Shares fell 5% in Germany.
CNBC
40 minutes ago
- CNBC
Trump's drug price ultimatum sets pharma firms scrambling
Pharmaceutical firms are scrambling to respond to a fresh ultimatum from U.S. President Donald Trump demanding "binding commitments" to lower their drug prices stateside . The White House said Thursday that President Trump had sent letters to 17 major pharmaceutical firms outlining the steps they must take to lower the price of U.S. prescription drugs to "most favored nation" (MFN) levels by Sept. 29. They were told that if they "refuse to step up," the government will deploy every tool in its "arsenal to protect American families from continued abusive drug pricing practices," without stating what those measures could be. The companies to receive letters were AbbVie , Amgen , AstraZeneca , Boehringer Ingelheim, Bristol-Myers Squibb , Eli Lilly , EMD Serono, Roche' s subsidiary Genentech, Gilead , GSK , Johnson & Johnson , Merck , Novartis , Novo Nordisk , Pfizer , Regeneron and Sanofi . Healthcare stocks tumbled Friday, following broader market losses as investors digested Trump's amended trade tariffs. Shares of Wegovy-maker Novo Nordisk dropped 5% in early morning trade before paring losses to trade 1.3% lower at 11:15 a.m. London time (6:15 a.m. ET). Companies were informed that they must provide MFN prices to all Medicaid patients, the U.S. health program for low-income patients. They were also told not to offer medicines to other developed markets at better prices than those offered in the U.S., and that they should sell drugs directly to U.S. patients, thereby cutting out pharmacy middlemen known as pharmacy benefit managers (PBMs). Trump has long lambasted pharmaceutical firms for what he dubs are unfair pricing practices, previously saying that he planned to bring down U.S. prices by 80%. In May, the president signed an executive order to lower drug costs by tying the prices of some medicines in the U.S. to the significantly lower ones abroad under the MFN policy. The U.S. consistently pays the most in the world for many prescription drugs, due in part to the U.S.′ highly complex and fragmented reimbursement system and lack of national pricing control. The latest announcement comes as the pharmaceutical industry is also calling for clarity on potential industry-wide tariffs. Trump previously warned these could run as high as 200%. Many companies have nevertheless shared that they agree with some of Trump's concerns. AstraZeneca CEO Pascal Soriot said Tuesday that the Anglo-Swedish firm had been liaising closely with the U.S. administration over the MFN policy and investment in U.S. manufacturing more broadly. Last week, it announced plans to invest $50 billion in the U.S., following a slew of other pharma firms. "There are issues around prices. I personally believe the president is right to say price equalization should happen," Soriot told reporters on an earnings call. Vas Narasimhan, CEO of Swiss-headquartered Novartis, also said last month that the firm was pursuing an MFN policy to lower U.S. drug prices. JPMorgan analysts said in a note Friday that while the latest announcement was intended to serve as a stark warning, ongoing talks between with the U.S. administration could buy pharma firms some time to respond. "While the government's latest announcement may appear harsh, we think it is likely that the matter is being discussed to some extent between the companies and the government, and we believe no changes that would have a significant negative impact on pharmaceutical companies will occur in the short term," analysts led by Seiji Wakao said in a note to clients.
CNBC
an hour ago
- CNBC
Ray Dalio sells his last remaining stake in Bridgewater, steps away from hedge fund's board
Ray Dalio, founder of one of the biggest hedge funds Bridgewater, has dumped his remaining shares in the firm and stepped aside from its board. Bridgewater completed the final sale of Dalio's equity shares, wrapping up his management transition started in 2022, according to a person familiar with the matter. Dalio will continue to be a significant investor in Bridgewater's strategies and a mentor, the person said. The billionaire has been selling his equity for years. To facilitate the final transition of his ownership, Bridgewater raised capital from existing investors and employees. Co-CIOs Bob Prince and Greg Jensen are two significant equity holders, the person said. "We share our congratulations to Ray – he will always be our cherished founder, is a mentor to many, and remains a longstanding client with significant investments in Bridgewater's strategies," Bridgewater CEO Nir Bar Dea and Co-Chair Mike McGavick said in a July 21 letter to clients seen by CNBC. "Ray has always described the transition as a 'dream come true' and we're excited to have made it a reality together." The Wall Street Journal first reported Dalio's stake sale. The founder seemingly confirmed the transition in a LinkedIn post. Dalio, who founded Bridgewater in 1975, has focused on macro strategies, such as trading currency and fixed income markets based on economic trends. Dalio stepped down as Bridgewater's chief executive officer in 2017 and chairman at the end of 2021. Bridgewater enjoyed solid gains in the first half of 2025, with its Pure Alpha fund up 17% and its All Weather fund rising 8%, the person said.
