It was the most unexpected part of Trump’s speech yesterday. Perhaps, we just expected more about his promises made during the presidential campaign, so no one really thought that Trump will blame Drug industry instead.
To stay objective on this question, can you agree with President-elect? Well, we all know that prices for drugs are biting. Still, was it really necessary to crush this industry, leaving its stocks to face new problems?
He called them murders because of huge prices on their products. Still, did he really offer the way out?
Trump also noticed that the program of his ancestor Barack Obama which is called Obamacare will be replaced. With what? We still don’t know other options as his cabinet did not offer anything to replace Obamacare for now.
Stocks began to lose their value in the middle of Trump’s speech. Many of investors have already called it the populist speech with nothing offered in return.
After the elections, pharmaceutical shares went up, as the companies were hoping to receive friendly support.
He relies on the government that will buy drugs from the companies as the main customer and the new main regulator on the market. He is very concern about the ability to subsidize this industry. Researchers in this area afraid that many medical projects will be closed as those that can’t pay for themselves.
However, it is unlikely that bold Trump’s decisions will be able to harm the pharma industry too much, as they will have to pass Congress.