13.05.25 - Next focus - on Pharma

After days of teasing a major announcement, US President Trump announced he will sign an executive order mandating that Americans pay no more for prescription drugs than citizens in the countries with the lowest prices. He claimed this could cut US drug costs by up to 80%.
The initial announcement triggered a global selloff in pharmaceutical stocks. However, shares rebounded as details clarified the plan targets pricing gaps between countries, particularly in Europe, rather than directly cutting into pharma company profits.

Markets: Pharma stocks recovered yesterday and could even benefit from the broader risk-on sentiment, trading largely sideways today. In contrast, cryptos lose ground, as speculations and hopes that Trump’s big announcement could count for this sector quickly faded.

My view: The market remains highly news-driven. I continue to view the pharma sector positively due to its defensive characteristics. However, given lingering uncertainties and the potential impact of further policy details, I remain cautious. I’m maintaining a core allocation but, after the recent rally, I prefer to wait before increasing exposure.

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