Di Yi Cai Jing Zi Xun·2025-08-08 12:12Core Viewpoint - The global pharmaceutical industry is experiencing a downturn in the capital market due to uncertain policies from the Trump administration, leading to increased cost pressures and a trend of cost-cutting measures among major companies [2][3]. Market Performance - The S&P 500 healthcare sector index has declined by approximately 5% this year, while the overall S&P 500 index has increased by over 7% [2]. - The price-to-earnings (P/E) ratio for the healthcare sector has dropped from nearly 20 times to about 16 times over the past year [3]. Company Actions - Merck has announced a cost-cutting and layoff plan aimed at saving $3 billion annually by 2027, with an expected cost increase of $200 million due to tariffs [3]. - Pfizer has initiated a significant cost reduction plan, targeting net savings of approximately $4.5 billion by the end of 2025 and $7.2 billion by the end of 2027 [4]. - Moderna is facing financial challenges, with its stock price down over 75% in the past year, and plans to cut its workforce by 10% [5]. Future Growth Strategies - Companies are focusing on advancing their drug pipelines to drive future growth, with Novo Nordisk highlighting ongoing clinical trials for key products [6]. - The pharmaceutical industry is facing a wave of patent expirations in the coming years, with nearly $200 billion in sales from drugs set to lose patent protection before 2030 [7]. Mergers and Acquisitions - There has been a notable decrease in large-scale acquisitions in the pharmaceutical sector, with companies now favoring smaller deals to achieve higher returns [8]. - Chinese companies are increasingly attracting interest from global pharmaceutical firms, with licensing deals valued at $35 billion in the first half of the year [9].