Cigna and CVS shares fall as Trump targets ‘middlemen' in sweeping executive order against Big Pharma

Core Points - President Trump signed an executive order aimed at reducing prescription drug prices by up to 90%, targeting pharmaceutical companies and middlemen [1][2] - The order revives the "most favored nation" policy, pushing foreign countries to share more of the R&D costs that the US has been shouldering [2] - The US pays the highest prices for prescription drugs, often nearly three times more than other developed nations [4] Company Impact - Shares of Cigna fell nearly 6% and CVS Health dropped over 3% following the announcement, indicating market concern over the executive order's implications [3][11] - Major US drugmakers initially saw stock declines but later rebounded as analysts suggested the order would be difficult to implement [12] - Merck, Pfizer, Gilead, and Eli Lilly experienced stock increases of 5.9%, 3.6%, 7.1%, and 2.9% respectively, reflecting investor optimism about their resilience against the order [12] Regulatory Actions - The order directs the US Trade Representative and Commerce Secretary to address unreasonable foreign drug pricing policies [6] - Health and Human Services Secretary will set targets for price reductions and initiate negotiations with industry leaders after 30 days [6][7] - The Federal Trade Commission is urged to enhance enforcement against anti-competitive practices by drugmakers [13]