Obama drug price plans spook Europe pharma investors

* European healthcare sector off 4.7 pct

* Novartis and AstraZeneca lead losers

* Echoes of European policies in Obama plans

By Ben Hirschler, European Pharmaceuticals Correspondent

LONDON, Feb 27 (Reuters) - European drug stocks tumbled on Friday after U.S. President Barack Obama targeted high drug prices in his 2010 budget, underlining the importance of U.S. sales to companies based in Basel, London and Paris.

The Stoxx Europe Healthcare index .SXDP had fallen 4.7 percent by 1130 GMT, exceeding a 4.1 percent slide in the American Exchange Pharmaceutical index .DRG overnight, with AstraZeneca (AZN.L) and Novartis (NOVN.VX) both losing more than 7 percent.

The United States is the world's biggest and most profitable drug market, accounting for nearly half of sales at companies like GlaxoSmithKline (GSK.L) and AstraZeneca.

Traditionally high margins mean the country contributes an even larger chunk of European drugmakers' profits.