European pharmaceuticals fall on looming U.S. tariffs

Shares in some European pharmaceutical companies fell on Wednesday morning after U.S. President Donald Trump threatened to implement up to 200% tariffs on imported pharmaceuticals

In a televised administration cabinet meeting Trump added that he would give drugmakers about one year "to get their act together"

Belgium-based firm UCB UCB.BR fell 1.8%, with Danish peers like Zealand Pharma ZELA.CO falling 2%, Novo Nordisk NOVOb.CO losing 1.1%, and H Lundbeck HLUNa.CO falling 3%

Elsewhere, France's Sanofi SASY.PA is down 0.8%, Swiss Novartis NOVN.S edged down 0.8%, while British AstraZeneca AZN.L fell 0.5%

ING analysts Maxime Sranart, and David Vagman said in a note that they expect the threat to put pressure on the segment, but they do not think such steep rates of tariffs to materialise

"This threat is mainly focused on bringing the European Union, India and Switzerland to the negotiating table", the analysts said, adding that such a tariff rate would imply a de facto embargo on pharmaceutical products manufactured outside of the U.S.

They also pointed out that implementing such duties would increase the risk of product shortages in the U.S.