AstraZeneca has lost its long-held status as the most valuable company on the London Stock Exchange after a sharp dip in its share price, triggered by fresh pressure from Washington on drug pricing. The pharmaceutical giant’s stock slid nearly 6% during Monday trading, dropping its market capitalization to around £154 billion, falling just behind HSBC Holdings, now valued at £156 billion.
The shake-up comes in the wake of new policy steps from U.S. President Donald Trump, who has signaled aggressive plans to bring down the cost of prescription drugs. The move has rattled pharmaceutical markets globally, hitting share prices across Europe and the U.S. In pre-market trading on Monday, AstraZeneca’s stock continued to slip, losing more than 3% as investors reacted to the policy announcements.
The impact is part of a wider trend affecting drugmakers across Europe. Alongside plans to slash drug prices in the U.S., the Trump administration is also considering imposing tariffs on pharmaceutical imports, a double hit to companies with major global operations. While the full scope of these measures remains unclear, the financial markets are already responding with caution.
Speaking last month, AstraZeneca CEO Pascal Soriot expressed concern about trade barriers that tariffs were not an effective tool for managing the pharmaceutical sector. His comments came as the company faced rising uncertainty over how evolving U.S. policies could influence its international revenue streams.
In contrast, HSBC appears to have weathered the latest turbulence with less volatility. The banking group recently said it does not expect any meaningful impact from potential U.S. trade tariffs on its operations. The company also moved to reassure investors by launching a new share buyback program, unveiled last month as part of its broader strategy to return value to shareholders amid global economic instability.
While the pharmaceutical sector contends with an increasingly complex international landscape, companies like HSBC have shown greater resilience, supported by more diversified exposure outside of trade-sensitive industries.
The recent shift at the top of the UK market reflects how quickly global policy shifts can reshape the corporate hierarchy and just how sensitive pharmaceutical stocks remain to political developments, particularly in the U.S., one of the world’s largest drug markets.
