(Bloomberg) -- Shares of Asian pharmaceutical companies fell after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in-line with other countries.

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Drugmakers were the worst-performing sector in Japan on Monday, weighing on the benchmark Topix despite optimism for a US-China trade deal broadly boosting markets across the region. Chugai Pharmaceutical Co. dropped as much as 7.2%, the most in a month, with peers Daiichi Sankyo Co. and Takeda Pharmaceutical Co. losing around 5%.

Meanwhile in South Korea, SK Biopharmaceuticals Co., Celltrion Inc. and Samsung Biologics Co. all fell over 3%. In Hong Kong, BeiGene Ltd. tumbled as much more than 5% and Innovent Biologics Inc. dropped 3.7%.

The declines come after Trump said on social media he intends to sign an executive order lowering the price of prescription medicines at 9 a.m. on Monday in Washington, after reports emerged of the plan last week. The announcement is pressuring drug-related stocks, on worries their profits will take a hit if they have to reduce prices in the US.

READ: Trump Seeks to Align US Drug Costs With Cheapest Ones Abroad

Although the feasibility of Trump’s plan is “questionable,” his announcement is negative for the pharmaceutical sector, Hidemaru Yamaguchi, a health-care sector analyst at Citigroup Global Markets Japan Inc., wrote in a note.

Firms that depend on the US for a large chunk of sales, including Japan’s Takeda, Astellas Pharma Inc. and Otsuka Holdings Co., are especially vulnerable, he added. Shares of Astellas and Otsuka were also lower on Monday.

Americans pay the most in the world for medicines, fueling innovation and driving the growth of the industry. Drugmakers have said revamping the system will slash revenue and stifle the development of breakthrough therapies that have the potential to lengthen and improve lives.

Trump cited the industry’s argument, but said it meant that “the ‘suckers’ of America” ended up bearing those costs “for no reason whatsoever.” His social media post didn’t detail how the order would work, or any limits that may apply.

It’s not the first time Trump has had high drug costs in his sights. His plan seems similar to one proposed during his first term aimed at capping Medicare drug prices, Stephen Barker, an equities analyst at Jefferies Japan Ltd. wrote in a note.

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The effort was struck down in federal court after drug companies challenged it, claiming the administration hadn’t properly carried out the rule-making process.

Still, a renewed push to lower drug prices may have an “enormous” impact on the sector’s revenues, Barker said. That’s because Medicare, a government-funded program that offers health insurance for people aged 65 or older, and Medicaid, which covers low-income citizens, may collectively account for about 40% of all drug sales in the US, he said.

In Japan, Astellas, Ono Pharmaceutical Co., Sumitomo Pharma Co., Shionogi & Co. and Eisai Co. may be at risk, according to Barker.

The US government already negotiates prices for some of the highest-cost medicines used in Medicare under the Inflation Reduction Act, which passed in 2022 under former President Joe Biden, with more slated to be added every year.

Trump’s plan likely only affects the drugs up for price negotiations under the IRA, said Evan Seigerman, head of health-care research at BMO Capital Markets. “Importantly, the government has no power to set prices in the commercial market,” and potentially faces resistance from House Republicans to implementing legislation beyond what can be done via the executive order, he said.

--With assistance from Charlotte Yang and Amber Tong.

(Updates to add details throughout.)

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