Latest news with #ChugaiPharmaceutical
Nikkei Asia
a day ago
- Business
- Nikkei Asia
Japan drugmaker Chugai invests in Western startups
TOKYO -- Chugai Pharmaceutical has invested in a total of four European and American startups through its corporate venture capital arm, the Japanese company said Friday. The moves were detailed in a briefing for journalists and investors on Chugai's "open innovation" strategy.
Japan Times
12-05-2025
- Business
- Japan Times
Asian pharma stocks tumble on Trump signal to cut U.S. drug prices
Shares of Asian pharmaceutical companies fell after U.S. President Donald Trump announced a plan to order a cut in U.S. prescription drug costs to bring them in line with other countries. Drugmakers were the worst-performing sector in Japan on Monday, dragging the benchmark Topix lower despite hopes of a U.S.-China trade deal broadly boosting markets across Asia. Chugai Pharmaceutical plunged as much as 10%, the most since February 2024, with peers Daiichi Sankyo sliding 7.8% to the day's low and Takeda Pharmaceutical losing over 5%. Meanwhile in Hong Kong, BeiGene tumbled as much 8.8% and Innovent Biologics dropped 6.4%. In South Korea, SK Biopharmaceuticals, Celltrion and Samsung Biologics all fell over 3%. India's Sun Pharmaceutical Industries lost 7% at one point, with Lupin and Aurobindo Pharma falling around 3%. The declines come after Trump said on social media he intends to sign an executive order lowering the price of prescription medicines at 9 a.m. on Monday in Washington, after reports emerged of the plan last week. The announcement is pressuring drug-related stocks on worries their profits will take a hit if they have to reduce prices in the U.S. Although the feasibility of Trump's plan is "questionable,' his announcement is negative for the pharmaceutical sector, Hidemaru Yamaguchi, a health care sector analyst at Citigroup Global Markets Japan, wrote in a note. Firms that depend on the U.S. for a large chunk of sales, including Japan's Takeda, Astellas Pharma and Otsuka Holdings, are especially vulnerable, he added. Shares of Astellas and Otsuka also lost over 4% Monday. Americans pay the most in the world for medicines, fueling innovation and driving the growth of the industry. Drugmakers have said revamping the system will slash revenue and stifle the development of breakthrough therapies that have the potential to lengthen and improve lives. Trump cited the industry's argument, but said it meant that "the 'suckers' of America' ended up bearing those costs "for no reason whatsoever.' His social media post didn't detail how the order would work, or any limits that may apply. It's not the first time Trump has targeted high drug costs. His current plan seems similar to one proposed during his first term aimed at capping Medicare drug prices, Stephen Barker, an equities analyst at Jefferies Japan wrote in a note. The effort was struck down in federal court after drug companies challenged it, claiming the administration hadn't properly carried out the rule-making process. Still, a renewed push to lower drug prices may have an "enormous' impact on the sector's revenues, Barker said. That's because Medicare, a government-funded program that offers health insurance for people age 65 or older, and Medicaid, which covers low-income citizens, may collectively account for about 40% of all drug sales in the U.S., he said. In Japan, Astellas, Ono Pharmaceutical, Sumitomo Pharma, Shionogi & Co. and Eisai may be at risk, according to Barker. The U.S. government already negotiates prices for some of the highest-cost medicines used in Medicare under the Inflation Reduction Act (IRA), which was passed in 2022 under former President Joe Biden, with more slated to be added every year. Trump's plan likely only affects the drugs up for price negotiations under the IRA, said Evan Seigerman, head of health care research at BMO Capital Markets. "Importantly, the government has no power to set prices in the commercial market,' and potentially faces resistance from House Republicans to implementing legislation beyond what can be done via the executive order, he said.
Yahoo
12-05-2025
- Business
- Yahoo
Trump Vows US Drug Price Cuts of Up to 80% in Industry Upheaval
(Bloomberg) -- President Donald Trump said he plans to order a cut in US prescription drug costs by mandating that Americans pay no more than people in countries that have the lowest price. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies In a social media post, Trump said that he'll sign an executive order at 9 a.m. Monday in Washington to institute what he called a most-favored nation policy. While he didn't give details, shares in drugmakers across Asia tumbled on Monday as investors grappled with the potential implications for the world's largest pharmaceutical market. Trump said his plan would see the US 'pay the same price as the Nation that pays the lowest price anywhere in the World.' While predicting that pharmaceutical prices could drop 30% to 80% in the US, Trump also said prices would likely 'rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA!' Japanese drugmakers led a slump in shares. Chugai Pharmaceutical Co. plunged 11%, the biggest one-day loss in 14 years. Daiichi Sankyo Co. dropped 8.1%, the most since September and Takeda Pharmaceutical Co. lost more than 5%. In South Korea, Celltrion Inc. and Samsung Biologics Co. fell more than 4%. Meanwhile, the Hong Kong-listed shares of BeiGene Ltd., which earns most of its revenue in the US, tumbled 10%. China's largest pharma company, Jiangsu Hengrui Pharmaceuticals Co., was also swept up in the selloff, falling more than 4% despite not currently marketing any medicines in the US. In Mumbai, Sun Pharmaceuticals Industries Ltd., which gets about 33% of its sales from the US and is India's largest drugmaker, slumped as much as 7% before paring losses. Few Details Americans pay the most in the world for medicines, fueling innovation and driving the growth of the pharmaceutical industry. Drugmakers have said revamping the system will slash revenue and stifle the development of breakthrough therapies that have the potential to lengthen and improve lives. Trump cited the industry's argument, but said it meant that 'the 'suckers' of America' ended up bearing those costs 'for no reason whatsoever.' The US government already negotiates prices for some of the highest-cost medicines used in Medicare health insurance under the Inflation Reduction Act, which passed in 2022 under former President Joe Biden, with more slated to be added every year. The first two rounds of drug price negotiations haven't included physician-administered drugs, but the next round might. Trump's Truth Social post — preceded by an earlier one that promised 'one of the most important and impactful' posts he has ever issued — didn't offer specifics on the order. He also didn't outline potential limits on the policy, such as whether it would apply only to government programs such as Medicare or Medicaid, if it would be limited to certain drugs or categories of drugs or if the White House sees a way to apply this more broadly. While it's still unclear which drug companies will be affected by the executive order, investors are most worried about blockbuster drugs in Medicare Part-B and drugs serving large Medicaid populations, according to Jared Holz, a health-care strategist at Mizuho Securities USA LLC. Billionaire hedge fund manager Bill Ackman suggested Trump might have been inspired by an idea he floated on X in March, when he said the best way to reduce US drug prices 'is to make it illegal for drug companies to sell the same drugs abroad for lower prices than they sell them for here.' In his first term, Trump proposed a Medicare pilot program for drugs with no low-cost generic competition that are given in doctor's offices, saying he wanted to bring prices in line with countries like France and Japan where they cost dramatically less. That plan, which would have phased in over three years, aimed to ensure Medicare paid the lowest price offered to a group of 22 nations. The effort was struck down in federal court after drug companies challenged it, claiming the administration hadn't properly carried out the rulemaking process. The Biden administration didn't appeal that finding, and instead pursued legislation that led to the Inflation Reduction Act. The latest proposal may also face difficulties, according to analysts. 'There is no easy way forward, as the executive order needs to be passed by the Senate to become legislation,' Cui Cui, an analyst at Jefferies, wrote in a note. The plan is expected to face pushback from both the Senate as well as the industry, she wrote. --With assistance from Kanoko Matsuyama, Amber Tong and Gerry Smith. US Border Towns Are Being Ravaged by Canada's Furious Boycott How the Lizard King Built a Reptile Empire Selling $50,000 Geckos Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-05-2025
- Business
- Yahoo
Trump Vows US Drug Price Cuts of Up to 80% in Industry Upheaval
(Bloomberg) -- President Donald Trump said he plans to order a cut in US prescription drug costs by mandating that Americans pay no more than people in countries that have the lowest price. A New Central Park Amenity, Tailored to Its East Harlem Neighbors As Trump Reshapes Housing Policy, Renters Face Rollback of Rights Is Trump's Plan to Reopen the Notorious Alcatraz Prison Realistic? What's Behind the Rise in Serious Injuries on New York City's Streets? NYC Warns of 17% Drop in Foreign Tourists Due to Trump Policies In a social media post, Trump said that he'll sign an executive order at 9 a.m. Monday in Washington to institute what he called a most-favored nation policy. While he didn't give details, shares in drugmakers across Asia tumbled on Monday as investors grappled with the potential implications for the world's largest pharmaceutical market. Trump said his plan would see the US 'pay the same price as the Nation that pays the lowest price anywhere in the World.' While predicting that pharmaceutical prices could drop 30% to 80% in the US, Trump also said prices would likely 'rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA!' Japanese drugmakers led a slump in shares. Chugai Pharmaceutical Co. plunged 11%, the biggest one-day loss in 14 years. Daiichi Sankyo Co. dropped 8.1%, the most since September and Takeda Pharmaceutical Co. lost more than 5%. In South Korea, Celltrion Inc. and Samsung Biologics Co. fell more than 4%. Meanwhile, the Hong Kong-listed shares of BeiGene Ltd., which earns most of its revenue in the US, tumbled 10%. China's largest pharma company, Jiangsu Hengrui Pharmaceuticals Co., was also swept up in the selloff, falling more than 4% despite not currently marketing any medicines in the US. In Mumbai, Sun Pharmaceuticals Industries Ltd., which gets about 33% of its sales from the US and is India's largest drugmaker, slumped as much as 7% before paring losses. Few Details Americans pay the most in the world for medicines, fueling innovation and driving the growth of the pharmaceutical industry. Drugmakers have said revamping the system will slash revenue and stifle the development of breakthrough therapies that have the potential to lengthen and improve lives. Trump cited the industry's argument, but said it meant that 'the 'suckers' of America' ended up bearing those costs 'for no reason whatsoever.' The US government already negotiates prices for some of the highest-cost medicines used in Medicare health insurance under the Inflation Reduction Act, which passed in 2022 under former President Joe Biden, with more slated to be added every year. The first two rounds of drug price negotiations haven't included physician-administered drugs, but the next round might. Trump's Truth Social post — preceded by an earlier one that promised 'one of the most important and impactful' posts he has ever issued — didn't offer specifics on the order. He also didn't outline potential limits on the policy, such as whether it would apply only to government programs such as Medicare or Medicaid, if it would be limited to certain drugs or categories of drugs or if the White House sees a way to apply this more broadly. While it's still unclear which drug companies will be affected by the executive order, investors are most worried about blockbuster drugs in Medicare Part-B and drugs serving large Medicaid populations, according to Jared Holz, a health-care strategist at Mizuho Securities USA LLC. Billionaire hedge fund manager Bill Ackman suggested Trump might have been inspired by an idea he floated on X in March, when he said the best way to reduce US drug prices 'is to make it illegal for drug companies to sell the same drugs abroad for lower prices than they sell them for here.' In his first term, Trump proposed a Medicare pilot program for drugs with no low-cost generic competition that are given in doctor's offices, saying he wanted to bring prices in line with countries like France and Japan where they cost dramatically less. That plan, which would have phased in over three years, aimed to ensure Medicare paid the lowest price offered to a group of 22 nations. The effort was struck down in federal court after drug companies challenged it, claiming the administration hadn't properly carried out the rulemaking process. The Biden administration didn't appeal that finding, and instead pursued legislation that led to the Inflation Reduction Act. The latest proposal may also face difficulties, according to analysts. 'There is no easy way forward, as the executive order needs to be passed by the Senate to become legislation,' Cui Cui, an analyst at Jefferies, wrote in a note. The plan is expected to face pushback from both the Senate as well as the industry, she wrote. --With assistance from Kanoko Matsuyama, Amber Tong and Gerry Smith. US Border Towns Are Being Ravaged by Canada's Furious Boycott How the Lizard King Built a Reptile Empire Selling $50,000 Geckos Maybe AI Slop Is Killing the Internet, After All With the New York Liberty, Clara Wu Tsai Aims for the First $1 Billion Women's Sports Franchise Pre-Tariff Car Buying Frenzy Leaves Americans With a Big Debt Problem ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Irish Examiner
12-05-2025
- Business
- Irish Examiner
Trump's plan to slash US prescription drugs costs sparks pharma stocks fears
Shares of Asian pharmaceutical companies fell after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in line with other countries. Drugmakers were the worst-performing sector in Japan on Monday, dragging the benchmark Topix lower despite hopes of a US-China trade deal broadly boosting markets across Asia. Chugai Pharmaceutical plunged as much as 10%, the most since February 2024, with peers Daiichi Sankyo sliding 7.8% to the day's low and Takeda Pharmaceutical losing over 5%. Meanwhile in Hong Kong, BeiGene. tumbled as much 8.8% and Innovent Biologics dropped 6.4%. In South Korea, SK Biopharmaceuticals, Celltrion and Samsung Biologics all fell over 3%. India's Sun Pharmaceutical Industries lost 7% at one point, with Lupin and Aurobindo Pharma falling around 3%. The declines come after Mr Trump said on social media he intends to sign an executive order lowering the price of prescription medicines at 9 a.m. on Monday in Washington, after reports emerged of the plan last week. The announcement is pressuring drug-related stocks, on worries their profits will take a hit if they have to reduce prices in the US. Although the feasibility of Mr Trump's plan is 'questionable,' his announcement is negative for the pharmaceutical sector, Hidemaru Yamaguchi, a healthcare sector analyst at Citigroup Global Markets Japan Inc., wrote in a note. Firms that depend on the US for a large chunk of sales, including Japan's Takeda, Astellas Pharma and Otsuka Holdings, are especially vulnerable, he added. Shares of Astellas and Otsuka also lost over 4% Monday. Americans pay the most in the world for medicines, fueling innovation and driving the growth of the industry. Drugmakers have said revamping the system will slash revenue and stifle the development of breakthrough therapies that have the potential to lengthen and improve lives. Trump cited the industry's argument, but said it meant that 'the 'suckers' of America' ended up bearing those costs 'for no reason whatsoever.' His social media post didn't detail how the order would work, or any limits that may apply. It's not the first time Trump has targeted high drug costs. His current plan seems similar to one proposed during his first term aimed at capping Medicare drug prices, Stephen Barker, an equities analyst at Jefferies Japan Ltd. wrote in a note. The effort was struck down in federal court after drug companies challenged it, claiming the administration hadn't properly carried out the rule-making process. Still, a renewed push to lower drug prices may have an 'enormous' impact on the sector's revenues, Mr Barker said. That's because Medicare, aUS government-funded programme that offers health insurance for people aged 65 or older, and Medicaid, which covers low-income citizens, may collectively account for about 40% of all drug sales in the US, he said. In Japan, Astellas, Ono Pharmaceutical, Sumitomo Pharma, Shionogi & Co. and Eisai may be at risk, according to Mr Barker. The US government already negotiates prices for some of the highest-cost medicines used in Medicare under the Inflation Reduction Act, which was passed in 2022 under former president Joe Biden, with more slated to be added every year. Mr Trump's plan likely only affects the drugs up for price negotiations under that act, said Evan Seigerman, head of health-care research at BMO Capital Markets. 'Importantly, the government has no power to set prices in the commercial market,' and potentially faces resistance from House Republicans to implementing legislation beyond what can be done via the executive order, he said. Bloomberg
