US drugmakers fall on report of Trump plan to lower drug prices

Shares of U.S. drugmakers fall between 1% and 2% premarket

Shares of Eli Lilly LLY.N down 1.9%, Gilead GILD.O down 1.4%, Bristol Myers Squibb BMY.N down 1.3% and Merck MRK.N down 1% premarket

U.S. President Donald Trump is expected to sign an executive order as early as next week that would revive an effort to decrease drug costs, Politico reported late on Wednesday

Trump plans to reduce drug costs by tying the amount the government pays for some medicines to lower prices abroad, according to the report

The order is expected to direct aides to pursue the initiative, called most favored nation, for a selection of drugs within the Medicare program

"We would note that the Trump administration could face legal challenges on whatever most favored nation plan it attempts to implement (like it faced in 2020)" - Leerink Partners

Up to last close, LLY up 0.4%, GILD up 7.1%, BMY down 15.8%, MRK down 20.5% YTD