It has been a bad year for pharma stocks, and it only got worse over the weekend when Trump announced plans to slash drug costs in the US by as much as 80% following his "Most Favored Nation" Executive Order.
As a result, Goldman's Europe pharma specialist Seth James writes today that "pharma now trades like energy did in the peak of the ESG era – like it’s dying." As the chart below shows, the sector has not been cheaper on a relative PE basis than in the GFC recovery and the peak frothy M2 covid times.
