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VanEck Pharmaceutical ETF drops 8% amid US drug pricing policy risks and Eli Lilly's stock slump

Market News
28 Mar 2026
24/7 Wall Street
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Bearish
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VanEck Pharmaceutical ETF (PPH) has fallen nearly 8% in the past month due to pressure from U.S. drug pricing policies and heavy concentration in Eli Lilly stock, which makes up nearly 18% of the fund. The Trump-era "most favored nation" pricing program and potential expansion of Medicare drug price negotiations threaten to lower revenue forecasts across the pharmaceutical sector. Meanwhile, Eli Lilly's decline is tied to competitive pressures on its GLP-1 obesity drugs, with patent expirations allowing cheaper generics. Investors should watch for policy changes and Eli Lilly's market position, as these factors will heavily influence PPH's performance in the next year.

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