Trumps talks tough on drugs pricing, puts companies under pressure
The Dollar Business Bureau
President-elect Donald Trump bashed global drug manufacturing companies for overpricing their drugs and warned that they will have to deal with more competitive bidding practices for federal contracts during his administration.
Addressing his first press conference post-election, Trump said many companies were "getting away with murder" and that everything will change once he settles down in the White House.
Several drug companies have been criticised in the recent past for excessive hike in their drugs prices. Dow component Pfizer (PFE) has witnessed the wrath of the Congress for overpricing its life-saving allergy medication EpiPen. Allergan (AGN) and Valeant (VRX) have also been criticised for raising drug prices.
Trump's tough talk about drug prices has generated negative sentiments amongst investors, who once believed that another US presidential candidate Hillary Clinton would be tougher on the drug pricing. Clinton criticised the drug industry several times in her election campaigns, but Trump paid little attention to this issue.
In his quintessential rhetoric, Trump also lamented many pharmaceutical and biotech companies for manufacturing their drugs overseas instead of in the US and promised to bring these companies back in the country.
Trump also said he was going to initiate bidding process and will save billions of dollars over a period of time. “We are the largest buyer of drugs in the world, and yet, we don't bid properly,” he said.
Within hours post-conference, shares of major pharma companies including Natco Pharma, Dishman, Cadila Healthcare, Aurobindo Pharma, Sun Pharma and Lyka Labs fell somewhat in the range of 3.43% to 1.67%.