Morning Briefing
Summaries of health policy coverage from major news organizations
Pharma Stocks Reveal An Industry Breathing Sigh Of Relief Over Trump Win
The Wall Street Journal: Pharma Stocks Benefit From U.S. Election Result, But Relief May Be Fleeting
Shares of drugmakers rallied Wednesday on expectations that Mr. Trump’s election and Republican control of Congress would lessen the chances of government restrictions on drug prices—a prospect that seemed on the rise in response to a public backlash against escalating prescription costs over the past few years. Mr. Trump did speak out against high drug prices at times during his campaign—including supporting allowing the Medicare agency to directly negotiate lower drug prices with manufacturers—but he didn’t propose as many specific measures against prices as Mrs. Clinton did. (Loftus and Roland, 11/9)
Reuters: Pharma, Biotech Shares Soar As Trump Win Calms Pricing Talk
Pharmaceutical and biotechnology shares soared on Wednesday as Republican Donald Trump's U.S. presidential election calmed investor fears of tough action on drug pricing that has pressured the sector for more than a year. Hospital shares tumbled as a Republican sweep of Congress raised prospects for a rollback of the Affordable Care Act (ACA), which expanded the number of patients in government health plans. (11/9)
Bloomberg: Drugmakers Jump, Hospitals Plunge In Aftermath Of Trump Win
Pharmaceutical stocks and bonds were among the day’s biggest winners as the sweeping Republican victory in U.S. elections eased concern that price controls might be imposed in the world’s largest market for prescription medicines. Even as drug companies rallied, other parts of the health sector plunged. President-elect Donald Trump’s vow to repeal the Affordable Care Act sent shares of hospital chains and insurers tumbling on the possibility that millions of customers could lose coverage, disrupting the industry again just a few years after the landmark law took effect. (Tracer, Orr, Kresge and Bloomfield, 11/9)
The defeat of a closely watched ballot initiative to curb high drug prices also bolstered the industry —
The Washington Post: Drug Companies Just Scored A Big Election Victory
California voters rejected a closely watched ballot initiative aimed at capping how much most state-funded health insurance programs pay for prescription drugs, a possible bellwether of the lack of political appetite for more widespread policies to tackle high drug prices. State agencies would have been barred from paying more than the U.S. Department of Veterans Affairs does for prescription drugs. VA gets at least a 24 percent discount off the average manufacturer's price of a drug and is insulated against price hikes larger than inflation. (Johnson, 11/9)
The Sacramento Bee: Drug Companies Win Campaign Over Prop. 61 Price Cap
Pharmaceutical companies have won California’s most expensive ballot measure battle, beating back Proposition 61’s effort to cap drug prices. Proposition 61 was trailing 54 percent to 46 percent on Wednesday, and advocates acknowledged they had lost. (Cadelago, 11/9)
