The US Section 301 investigation into Germany’s pharmaceutical pricing has put the spotlight on how global trade policy can affect large US-based drug companies. Tariffs or tighter trade terms could reshape revenue streams, research budgets and investor sentiment across the sector. For investors, this news is less about short term noise and more about understanding which businesses look relatively well positioned if tensions persist or ease. This article breaks down how the probe could matter for big pharma and highlights 3 US pharmaceutical stocks from our screener that appear positively exposed to this development.

Krystal Biotech (KRYS)

Overview: Krystal Biotech is a commercial stage US biotech company that develops and sells genetic medicines for rare diseases. Its business is anchored by the VYJUVEK therapy for dystrophic epidermolysis bullosa and a broader pipeline targeting eye, lung, skin and cancer indications.

Operations: Krystal Biotech generates about US$417.3m in revenue from the discovery, development, manufacturing and commercialization of genetic medicines, all currently from the United States.

Market Cap: US$10.1b

Krystal Biotech stands out in this trade focused backdrop because it is a US based gene therapy company with high margin VYJUVEK revenue, a portfolio of rare disease and oncology programs, and an international rollout that could be influenced if German pricing pressure on foreign suppliers results in more attention on domestic innovation. At the same time, the stock trades on a high P/E multiple, relies heavily on a single commercial therapy and faces ongoing reimbursement negotiations in Europe, as well as recent insider selling that some investors may view cautiously. How these strengths and pressure points interact is a key part of the current Krystal Biotech story.

Krystal Biotech’s high margin VYJUVEK engine and rich rare disease pipeline are only half the story; the real puzzle is how concentrated revenue and Europe’s pricing push could reshape the risk reward profile in the 3 key rewards and 1 important warning sign

Kiniksa Pharmaceuticals International (KNSA)

Overview: Kiniksa Pharmaceuticals International is a biopharmaceutical company focused on immune related and cardiovascular diseases, led by ARCALYST for recurrent pericarditis and cardiac sarcoidosis, with additional monoclonal antibody programs KPL-387 and KPL-116 progressing through clinical and pre clinical development.

Operations: Kiniksa Pharmaceuticals International generates about US$754.0m in revenue from developing and delivering therapeutic medicines.

Market Cap: US$4.2b

Kiniksa Pharmaceuticals International provides targeted exposure to US led drug development in a therapy area where ARCALYST is gaining prescriber depth, supported by payer coverage and cash generation that can fund its pipeline. At the same time, the company is heavily reliant on a single product and carries a high P/E multiple, so any slowdown in ARCALYST uptake, pricing pressure or pipeline setbacks could affect returns, particularly as manufacturing shifts toward Samsung Biologics in South Korea. How these positives and pressure points balance out, including the impact of any US trade scrutiny of foreign produced medicines and Kiniksa’s domestic manufacturing footprint cited on recent calls, is what makes this stock a subject for closer analysis.

Kiniksa Pharmaceuticals International’s ARCALYST story depends on how much of today’s cash generation reflects the future opportunity versus concentration risk. Get the fuller picture in the analysis report for Kiniksa Pharmaceuticals International

Gilead Sciences (GILD)

Overview: Gilead Sciences is a large US biopharmaceutical company that discovers, develops and sells treatments for HIV, viral hepatitis, cancer and serious infections, including widely used HIV regimens like Biktarvy and cell therapies such as Yescarta and Tecartus.

Operations: Gilead Sciences generates about US$29.7b in revenue from the discovery, development and commercialization of medicines.

Market Cap: US$155.8b

Gilead Sciences is attracting fresh attention because it combines a broad HIV and oncology portfolio with strong profitability, high Return on Equity, a 2.65% dividend and analysts expecting earnings to grow faster than revenue as the mix shifts toward newer therapies like Trodelvy, Livdelzi and lenacapavir based regimens. The Section 301 focus on foreign underpayment and potential tariffs arguably highlights Gilead’s largely US centered intellectual property and profit base, which management has stressed when discussing tariff scenarios. At the same time, the stock carries meaningful debt, still leans heavily on HIV treatments and faces policy and pricing risks around US drug reform and future patent expiries. How those strengths and pressure points net out, especially with trade policy now in the foreground, is where the real debate on Gilead starts.

Gilead’s earnings mix is quietly shifting toward newer therapies, while investors still focus on legacy HIV cash flows. See how the trade sensitive risk reward stacks up in the analysis report for Gilead Sciences

The three US pharmaceutical stocks covered here are only the starting point, with the full US Pharmaceutical Stocks screener surfacing 5 more large US based companies that carry equally compelling narratives around scale, quality and exposure to medicine development.

Use Simply Wall St to identify and analyze the specific catalysts, trade sensitivities and business narratives that matter to you so you can focus on the highest conviction ideas in this part of the market.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.