European healthcare stocks surge as U.S. Pfizer deal reduces some uncertainty

Ambu A/S

01/10/2025 08:42

LONDON, Oct 1 (Reuters) - European healthcare stocks jumped on Wednesday, a day after Pfizer and U.S. President Donald Trump said the U.S.-based drugmaker agreed to lower prescription drug prices in the Medicaid program in exchange for tariff relief.

Healthcare stocks in the U.S. and Europe have been lagging this year due to the uncertainty around the U.S. Administration's stance on drug pricing, but, analysts said the deal has reduced uncertainty for the sector.

The healthcare sector index rose 2.77% .SXDP, which, if sustained that would be its biggest daily percentage gain since April.

Pharmaceutical companies, and their suppliers surged, topping Europe's STOXX 600 index. Ambu AMBUb.CO rose 8.9%, Sartorius SATG.DE 7.8%, Merck MRCG.DE 5% and Roche ROG.S 5%.

Pfizer shares rose 7% on Tuesday.

(Reporting by Alun John; Editing by Amanda Cooper)

((alun.john@thomsonreuters.com;))