Why a Clutch of Pharmaceutical and Biotech Stocks Escaped the Market's Swoon on Thursday

Core Viewpoint - The Trump administration's recent tariffs have significantly impacted the stock market, with pharmaceuticals and biotech being relatively less affected compared to other sectors [1][2]. Industry Impact - The stock market experienced one of its worst trading days, with the S&P 500 dropping by 4.8%, while Catalyst Pharmaceuticals and Veeva Systems saw smaller declines of 1.5% and 2%, respectively. Notably, Amgen and AstraZeneca reported gains of 1.5% and 2.4% [2]. - The pharmaceutical sector was notably absent from the list of tariffs, which had initially included a proposed 25% duty on foreign pharmaceutical manufacturers [3][4]. Future Considerations - The exemption from tariffs is temporary, and there are indications that the administration may soon impose tariffs specifically targeting pharmaceutical exports [4][5]. - The pharmaceutical industry has powerful lobbyists advocating for reduced tariffs, which may have influenced the temporary exemption [5][6]. Regulatory Developments - Despite the looming threat of tariffs, the pharmaceutical industry continues to announce positive developments, such as Amgen's FDA approval for its Uplizna drug to treat IgG4-related disease, marking a significant advancement for patients [9][10]. - The approval of Uplizna is expected to reduce reliance on long-term steroid use for patients, highlighting the industry's ongoing commitment to regulatory approvals and medication development [10].