What Happened?
A number of stocks fell in the afternoon session after reports revealed that the US may impose up to 100% tariffs on imports of branded and patented drugs.
This potential move would target pharmaceutical companies that have not negotiated deals to lower drug prices in the United States. The news sparked a significant sell-off in the sector, with the Nifty Pharma index declining over 5% as all its constituent stocks traded lower. The concerns were particularly pronounced for international drugmakers who rely on the US market.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Specialized Medical & Nursing Services company AMN Healthcare Services (NYSE: AMN) fell 3.7%. Is now the time to buy AMN Healthcare Services? Access our full analysis report here, it’s free.
- Outpatient & Specialty Care company DaVita (NYSE: DVA) fell 2.9%. Is now the time to buy DaVita? Access our full analysis report here, it’s free.
- Branded Pharmaceuticals company Bristol-Myers Squibb (NYSE: BMY) fell 3.8%. Is now the time to buy Bristol-Myers Squibb? Access our full analysis report here, it’s free.
- Therapeutics company Novavax (NASDAQ: NVAX) fell 4.9%. Is now the time to buy Novavax? Access our full analysis report here, it’s free.
- Therapeutics company AbbVie (NYSE: ABBV) fell 3%. Is now the time to buy AbbVie? Access our full analysis report here, it’s free.
Zooming In On Novavax (NVAX)
Novavax’s shares are extremely volatile and have had 54 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 6 days ago when the stock dropped 4.1% on the news that major indices including the S&P 500 and Dow Jones Industrial Average fell sharply as investors reacted to escalating uncertainty tied to the U.S.-Iran conflict and policy deadlines set by the Trump administration. Markets dislike unpredictability, and these fears were amplified, raising concerns of prolonged conflict and rising oil prices. This negative outlook reflected in consumer confidence, with the University of Michigan's sentiment index sliding to a three-month low.
Novavax is up 7.1% since the beginning of the year, but at $7.64 per share, it is still trading 31.8% below its 52-week high of $11.19 from February 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Novavax’s shares 5 years ago would now be looking at only $43.07.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
