Australia's healthcare stocks drop as Trump plans executive order to cut prescription drug prices

Clarity Pharmaceuticals

12/05/2025 05:58

** Australia's healthcare stocks .AXHJ down 1.1%

** The sub-index down as much as 1.5%, its lowest level since April 28

** "The weakness in healthcare is associated with rumours of drug price equalisation in the U.S., where they often pay a higher price than other markets," said Tim Bingham, portfolio manager for Australian Equities Income Portfolio at DNR Capital

** U.S. President Donald Trump said he would sign an executive order to cut prescription prices to the level paid by other high-income countries

** Shares of Neuren Pharmaceuticals NEU.AX, Telix Pharmaceuticals TLX.AX and Clarity Pharmaceuticals CU6.AX down between 7.4% and 8.1%, among top laggards in the ASX 200 .AXJO benchmark index

** Biotech giant CSL Ltd CSL.AX drops 1% after recovering from earlier losses of up to 3%

** Drugmakers in India and Japan down on concerns of falling drug prices following President Trump's statement

** Sub-index down 8.6% this year, as of last close

 (Reporting by Sherin Sunny & Shivangi Lahiri in Bengaluru)

 ((Sherin.Sunny@thomsonreuters.com;))