Donald Trump makes promise to cut drug prices, pharmaceutical stocks on Wall Street fall
By Charleston Lim
Since his announcement of running in this year's United States presidential elections and up to his eventual win, president-elect Donald Trump has been quite vocal about his different stance and opinions. Each of his tweets are apparently so powerful that they now hold sway over the fates of numerous companies, as witnessed by his recent attacks on companies that have plans of moving their businesses abroad.
Now, Trump's recent statements during an interview with Time Magazine, has caused a significant drop in pharmaceutical stocks as Trump announced that he will be cracking down on drug price hikes when he officially holds office.
Trump's initial victory last month caused quite a frenzy on Wall Street as brokers and investors bought pharmaceutical stocks in the boat load. Shares on several pharmaceutical stocks spiked right after his win. Trump's presidential election opponent, Hillary Clinton, was quite outspoken about her intention on fighting the controversial drug price hike and even announced that she would be lowering drug prices if she were to be put in office. Trump on the other hand made no such remark on his campaign trail, but now it seems like he also intends to implement the same plans as his election opponent.
"I'm going to bring down drug prices," Trump had stated in the interview with Time Magazine.
During the interview with Time Magazine, which featured Trump as its Person of the Year, Trump mentioned that he was going to be bringing down drug prices and he does not like what has happened to them in recent years. His comments instantly had a big impact on Wall Street which showed falling numbers for different pharmaceutical stocks including Pfizer, AbbVie, iShares Nasdaq Biotechnology ETF, and Valeant, among others.
"Congress will need the courage to step away from the special interests and do what is right for America," his campaign website had read speaking about the issue.