Japanese Drugmakers Drop Following Trump’s Discount Drug Website Announcement

• Sumitomo Pharma dropped 4.5%, Chugai Pharmaceutical fell 3.1%, and Takeda Pharmaceutical declined 1.5% following the announcement
• The overall drugmaker sector on the Tokyo Stock Exchange lost 1.6%, becoming the second-worst performer among 33 industry sub-indexes
• The TrumpRx.gov initiative requires global drugmakers to offer discounted 'most-favoured nation' pricing to U.S. consumers in return for exemptions from U.S. tariffs

Summary: Japanese Drugmakers Drop Following Trump's Discount Drug Website Announcement

Key Market Movement:

Japanese pharmaceutical stocks fell sharply on February 6, 2026, following President Trump's announcement of TrumpRx.gov, a government drug discount website. The drugmaker sector declined 1.6%, becoming the second-worst performer among Tokyo Stock Exchange's 33 industry sub-indexes.

Company-Specific Losses:

• Sumitomo Pharma: down 4.5%
• Chugai Pharmaceutical (Roche affiliate): down 3.1%
• Takeda Pharmaceutical (Japan's largest drugmaker): down 1.5%

Trump Administration Initiative:

On February 5, 2026, President Trump unveiled TrumpRx.gov at the White House, establishing "most-favoured nation" pricing agreements with 16 major global drugmakers. Under these deals, pharmaceutical companies agreed to offer discounted prices to American consumers in exchange for exemptions from U.S. tariffs.

Market Implications:

The announcement triggered immediate negative sentiment in Japanese pharmaceutical markets, suggesting investor concerns about potential revenue and margin pressures from the mandated price discounts. The most-favoured nation pricing structure implies U.S. consumers will access drugs at prices comparable to those in other developed nations, which could significantly impact pharmaceutical companies' profitability in the lucrative American market.

The sector-wide decline indicates broad concern across Japan's pharmaceutical industry, with larger exposure correlating to steeper losses. The tariff exemption trade-off suggests the Trump administration is leveraging trade policy to achieve domestic drug pricing objectives, creating uncertainty for international drugmakers heavily dependent on U.S. market revenues.