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On Tuesday, European markets opened down: the STOXX 600 index lost 0.7% due to a triple whammy of a drop in shares of pharmaceutical giant Novo Nordisk, Donald Trump’s public attack on US Federal Reserve Chairman Jerome Powell, and investor fears of US tariffs, Reutersreports.
Pharmaceutical sector – instability in Europe, risks for Ukraine and Israel
Novo Nordisk’s shares plunged by 8% after the US-based Eli Lilly presented a pill with similar efficacy to its hit drug Ozempic. This caused concern in the global pharmaceutical sector, which is already under pressure.
For Ukraine, this dynamic means the risk of price increases or delays in the supply of innovative medicines, which is especially critical for patients with diabetes or obesity.
Israel, which is actively developing the biotechnology sector and has an extensive health insurance system, will also respond to the changing pharmaceutical market. Global shifts in pricing may force Israel to reallocate health insurance budgets or accelerate the development of its own generics.
Trump’s pressure on the Fed: a blow to confidence, currency volatility
Donald Trump’s public demands for the US Federal Reserve to urgently cut interest rates have called into question its independence. This immediately triggered a sell-off on Wall Street and dollar volatility.
For Ukraine, this could lead to volatility in the hryvnia, as public debt and critical imports are tied to the dollar.
For Israel, where the shekel has been under pressure for several months due to the war in Gaza, a further weakening of the dollar could be a problem for both the budget and foreign trade.
Global investors are looking for new markets – a chance for the regions
Despite the general anxiety, the news of the deal between Sweden’s Biotage and the US KKR (+55.8% stake) indicates that interest in biotechnology remains strong.
For Ukraine and Israel, this is a signal that despite global risks, emerging markets can receive funding if they offer breakthroughsolutions in medicine, AI, security or defence.
