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Donald Trump’s latest pledge to drive down drug prices has left pharmaceutical stocks a little woozy.
Major drugmakers’ shares fell broadly on Tuesday morning after Mr Trump tweeted that he is “working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!”
The NYSE Arca biotech index , which is up 17 per cent thus far on the year, fell 1 per cent at the start of trading on Tuesday. The S&P 500′s healthcare index was the index’s worst-performing sector on Tuesday, dropping 1 per cent. Within that, Bristol-Myers Squibb was down 1.2 per cent; Pfizer, off 1 per cent; Johnson & Johnson, down 0.5 per cent; Mylan, down 2.3 per cent; Eli Lilly, down 2.3 per cent; Perrigo and Mallinckrodt, each shedding more than 3 per cent apiece.
It’s not the first time that Mr Trump or other lawmakers from either party have pledged to put a lid on rising drug prices. Although this morning’s Twitter missive didn’t contain specifics, the president has in the past said he would push to cut the length of time it takes to win regulatory approval for new medicines.