Another week of escalating tariff talks led to a slump across major U.S. stock market indices for the five-day trading period.

The S&P 500 dropped nearly 3% for the week, with losses in three of the five days. The benchmark index is set to have its worst quarter since 2022. The Dow Jones Industrial Average also slumped 2%, while the tech-heavy Nasdaq Composite dropped over 4%.

The S&P 500 Health Care Index Sector (NYSEARCA:XLV) was also down 1.79% during the week.

Here are some of the important healthcare stories from this week:

Trump reiterates plan to impose tariffs on pharmaceuticals

During a meeting with his cabinet Monday, President Donald Trump said that tariffs on pharmaceuticals would begin in the "not too distant" future. The president didn't provide specifics on whether the tariff would apply to imports from all countries, and whether it would apply to finished drugs and/or active pharmaceutical ingredients (APIs), the raw materials that make up medicines.

J&J to pay more than $1.6B in HIV drugs promotion case

Johnson & Johnson (JNJ) unit Janssen was ordered to pay $1.64B after a New Jersey federal court jury found the drugmaker guilty of marketing two HIV drugs for off-label uses. Judge Zahid Quraishi in Trenton said that Janssen must pay $360M for violating the False Claims Act and another $1.28B in civil fines.

Merck inks a licensing deal worth nearly $2B with China’s Jiangsu Hengrui

Merck (MRK) has reached a licensing agreement worth nearly $2B with the Chinese drugmaker Jiangsu Hengrui Pharmaceuticals to jointly develop and commercialize an experimental heart disease therapy, the companies announced Tuesday. Per the deal terms, Merck (MRK) will receive exclusive rights to develop, manufacture, and commercialize HRS-5346 globally except in Greater China. In exchange, the Rahway, New Jersey-based pharma giant will pay $200M upfront and milestone payments worth up to $1.77B to Jiangsu Hengrui. The company will also be required to pay royalties on net sales of HRS-5346 subject to the drug’s regulatory clearance.

GSK wins approval of antibiotic gepotidacin for urinary tract infections

The U.S. FDA has approved GSK's (GSK) Blujepa (gepotidacin), a topoisomerase inhibitor antibiotic for uncomplicated urinary tract infections. The indication is for females 12 years and older weighing at least 40kg. The recommended dosage is 1,500 mg (two 750 mg tablets) taken orally, twice daily for five days.

GSK has also entered into a collaboration with the UK Dementia Research Institute and Health Data Research UK to determine if the drugmaker's shingles vaccine can lower the risk of dementia.

Alcon upgraded at BofA Securities to Buy on earnings growth potential

Alcon (ALC) was upgraded to a Buy rating from Neutral at Bank of America Securities, citing a strong earnings growth outlook driven by upcoming product launches. Analysts at BofA Securities believe that investor expectations had been too high, but after management adjusted guidance in late 2024 and for FY25, the company is now positioned for an earnings upgrade cycle. BofA Securities has also raised PO to CHF96 from CHF82.

Cassava to phase out Alzheimer’s program by Q2

Cassava Sciences (SAVA) lost ~19% in the premarket on Tuesday after the company announced plans to discontinue its research program for its lead asset simufilam in Alzheimer’s disease by the end of the second quarter following a failure in a second late-stage trial for the oral small molecule.

Novo Nordisk Wegovy savings offer expanded to all retail pharmacies

Novo Nordisk (NVO) has expanded a program that provides a one-month supply of its weight loss medication Wegovy (semaglutide) for $499 for cash-paying customers at all retail pharmacies.

Trump administration cancels $12 billion in funding to state health departments

The U.S. Department of Health and Human Services (HHS) has reportedly cancelled about $12 billion in federal grants to states allocated during the COVID-19 pandemic.

The department on Thursday also announced plans to lay off as many as 10,000 full-time employees across multiple agencies as part of a restructuring drive expected to save $1.8B in taxpayer money annually. Citing a document, The Wall Street Journal, which first reported the changes, said that layoffs are expected to impact 3,500 full-time employees from the FDA (~19% of its workforce) and 2,400 workers from the CDC (~18% of its workforce).