Drug Stocks Slip Over Trump’s Pricing Tweet, But Not As Much As They Used To
In his tweet, the president promised that he's working on a way to curb high drug prices for Americans.
Stat:
Trump's Latest Tweet, Pledging A New System To Price Drugs, Dings Biopharma Stocks
President Trump’s tweeting still has the ability to rattle biopharma stocks, as a cryptic missive early Tuesday sent company shares south. “I am working on a new system where there will be competition in the Drug Industry,” he wrote on Twitter. “Pricing for the American people will come way down!” (Meghana Keshavan, 3/7)
The Wall Street Journal:
Analysts Scratch Their Heads Over Trump Drug Price Tweet
President Donald Trump is keeping biotech analysts busy trying to match up his opaque drug-pricing rhetoric with the complexities of the U.S. health-care system. Mr. Trump said on Twitter Tuesday morning that he is, “working on a new system where there will be competition in the Drug Industry.” He also cited an effort to “get rid of state lines” when selling health care, which he said would be in parts two and three of the Affordable Care Act overhaul. (Eisen, 3/7)
Bloomberg:
Trump Sends Pharma Stocks Down With New Tweet On Drug Prices
Trump sent his tweet the morning after House Republicans unveiled their long-awaited legislation to repeal and replace the Affordable Care Act late Monday, which he also touted Tuesday, adding that competition will come later in the health-care rollout. “We are intrigued by the timing of President Trump’s tweet this morning as it followed rapidly behind the House health-care reform bill, and we believe shows the administration’s continued focus on drug pricing,” Vamil Divan, an analyst at Credit Suisse AG, said in a note to clients. (Hopkins, 3/7)
The Wall Street Journal:
Trump’s Latest Drug Pricing Tweet Hits Biotech Stocks
Tuesday’s premarket tweet was enough to drag down the iShares Nasdaq Biotechnology exchange-traded fund, which tracks drug companies that could be hit by lower prices. The ETF dropped 1% shortly after the opening bell as some major players in the industry tumbled. Valeant Pharmacueticals International and Endo International Plc both fell 4.1%. Mallinckrodt Plc fell 2.4%, while Perrigo Plc was down 2.3%. Eli Lilly and was down 1.7% and Allergan Plc dropped 1.5%. (Eisen, 3/7)
San Francisco Chronicle:
Drugmakers Fall As Investors See Pricing Threat From Trump
In January, Trump accused drugmakers of “getting away with murder” on drug prices, and pharmaceutical and biotech stocks fell sharply. Less than three weeks later, he held an apparently friendly sit-down with industry executives at the White House and said he wants to speed up the drug approval process, which could bring costs down for drug companies. The stocks moved higher afterward. (Jay and Johnson, 3/7)
For more news on high drug costs, check out our weekly feature, Prescription Drug Watch, which includes coverage and perspectives of the issue.
