Trump targets foreign "freeloaders" with new pricing order

US pharma stocks regained ground Monday after Donald Trump signed an executive order aiming to slash prescription drug prices, a move that initially rattled investors but left many analysts unconvinced about its impact.

The order, announced during a White House press conference, seeks to tie US drug costs to those in other wealthy countries — part of what Mr Trump called a bid to “equalize” global pricing. If drugmakers don't agree to lower prices within 30 days, a so-called “most favored nation” model could be imposed, capping US prices at the lowest paid abroad.

“We are going to pay the lowest price there is in the world,” Mr Trump said, citing large price gaps between the US and countries like Sweden and Australia.