The UK healthcare sector was at the forefront of a broad rally in European stocks on Wednesday, with the FTSE 100 reaching a record high. Healthcare rose more than 4%, led by AstraZeneca, which gained over 6%, alongside advances for Hikma Pharmaceuticals and GSK.
This marks a strong start to the fourth quarter for the UK market. Year-to-date, the FTSE 100 has climbed 15%, while the Eurostoxx index is up 13% – both outpacing the S&P 500.
Policy shifts signal new opportunity for pharma
Sector momentum was supported by news that Pfizer had secured relief from threatened US tariffs in exchange for lowering some domestic drug prices – highlighting the transactional approach to trade and healthcare policy under President Trump. While tariffs of up to 100% on pharmaceutical imports were threatened as recently as last week, exemptions are now under negotiation.
In parallel, the launch of the US government’s new drug-purchasing platform, ‘TrumpRX’, has drawn attention. The commercial implications remain uncertain, but the potential easing of tariff pressure is seen as the more material development for global pharma in the near term.
AstraZeneca strengthens UK commitment
The UK pharma sector has lagged industries such as mining and banking this year: while GSK is up 20% and AstraZeneca 13%, these gains trail the stronger advances seen elsewhere, and Hikma has fallen 11%. Trade concerns have weighed on sentiment, but this week’s developments may signal a turning point.
AstraZeneca confirmed it will move to a dual primary listing in London and the US, while maintaining its UK headquarters in Cambridge. The decision addresses concerns about a possible delisting, reinforces confidence in the UK’s life sciences sector, and underpins AstraZeneca’s long-term investment in research and development.
The outlook for UK healthcare
With healthcare now standing alongside defence and mining as a driver of FTSE 100 performance, the UK sector appears well-positioned for the remainder of 2025. The combination of US policy flexibility and AstraZeneca’s reaffirmed UK presence provides greater stability for pharma companies operating in a still-uncertain global environment.
