Trump Demands US Drug Price Cuts, Sending Pharma Shares Slumping

European pharmaceutical stocks slumped, continuing a selloff that started with US-listed peers after President Donald Trump escalated his campaign to pressure drugmakers to lower prices in the country.

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Trump sent letters to 17 of the world’s largest drugmakers including Eli Lilly & Co., Novo Nordisk A/S and Pfizer Inc., insisting they immediately lower what they charge Medicaid for existing drugs. He also asked them to guarantee future medicines be launched and stay at prices on par with what they cost overseas.

He gave the companies 60 days to ...