Global pharmaceutical shares jumped in intraday trading Monday, reversing their pre-market declines, as investors anticipated the legal challenges that may result from attempts to carry out President Donald Trump's executive order on drug prices.

Trump signed an executive order Monday directing government health insurance agencies to buy medicines at the lower prices that drugmakers charge outside the U.S., potentially cutting drug costs, he said, by 59% to 90%. The order stipulates that Medicare, the government's health insurance program for the e💜lderly, and Medicaid, the program ﷺfor people with lower incomes, will offer to pay pharmaceutical companies the lowest prices charged in other developed countries. 

The executive order came a day after Trump posted on his Truth Social platform about a plan to reduce the prices of prescription drugs, sending shares of global pharmaceutical stocks tumbling early Monday. Following the release of the executive order, however, drug makers Eli Lilly (LLY), Pfizer (PFE), AbbVie (ABBV), Merck (MRK), and Novo Nordisk (NVO) all were up by Monday afternoon, tradingඣ between 3% and 6%.

Citi Analysts Think Order Faces 'Challenging Enforcement'

Citi analysts on Monday said that details of the government's plans to bring down drug prices are "still vague" but the "language in the EO has less focus on PBMs than expected, and we think challenging enforcement and likely headwinds in court is leading a rebound in the space."

澳洲幸运5开奖号码历史查询:PBMs, or pharmacy benefit managers, 🐈are companies that administer drug benefits for health insurers and work with insurers, drug makers, ไand pharmacies.

U.S. drug prices are nearly three times higher than those charged in other developed countries, according to U.S. government data. Branded drugs are more than three times higher, even with rebates included.