Asian pharmaceutical stocks fell on Tuesday as investors digested a warning from U.S. President Donald Trump on links between autism and vaccines and the taking of popular pain medication Tylenol by pregnant women.
Chinese makers of acetaminophen– a key active ingredient in Tylenol– were among the worst hit, while major pharmaceutical exporters to the U.S. also retreated.
Zhejiang Cheng Yi Pharmaceutical Co Ltd (SS:603811), Anhui Fengyuan Pharmaceutical Co Ltd (SZ:000153), Shanxi Zhendong Pharmaceutical (SZ:300158) and Hunan Er Kang Pharmaceutical (SZ:300267), which manufacture the ingredient, fell between 2.5% and 6% in Shanghai and Shenzhen trade. Jiangsu Hengrui Pharmaceuticals Co Ltd (HK:1276) and WuXi AppTec (HK:2359) fell about 4% each in Hong Kong trade.
Losses in broader Asian pharma stocks were less pronounced, with Indian majors including Dr Reddy’s Laboratories Ltd (NSE:REDY) and Sun Pharmaceutical Industries Ltd. (NSE:SUN) losing less than 1% each. Japan’s Takeda Pharmaceutical Co., Ltd. (TYO:4502) lost 0.5%.
Regional losses came tracking a 7.5% overnight slump in Tylenol maker Kenvue Inc (NYSE:KVUE), although the stock did rebound 5% in aftermarket trade.
Trump in a press conference on Monday advised pregnant women and parents of young children to avoid common vaccines and Tylenol, on claims that they are linked to causing autism.
Trump’s claims– which come as an extension of those touted by Health Secretary Robert F. Kennedy Jr.-- have been consistently debunked by medical research and autism advocacy groups.
Kennedy has repeatedly claimed that all vaccines are unsafe, despite mounting medical evidence against such claims. Kenvue on Monday also denied any links between acetaminophen and autism.
Still, Trump’s Monday announcement sparked some concerns that consumers will shirk the popular painkiller, which in turn could prompt weaker demand for its components.
Trump on Monday suggested that leucovorin, a form of folic acid, could be used as a treatment for autistic symptoms, although there is limited research backing said claims.
Source :
https://www.investing.com/news/stock-market-news/asian-pharma-stocks-fall-on-trump-tylenol-warning-acetaminophen-makers-hit-4250306
