Leave it to President Donald Trump to move an entire economic sector with just the tips of his furious Tweeting fingers. Trump tweeted on Tuesday that drug prices were going to com “way down!” leaving pharmaceutical companies in a pile of dust. The President’s tweet clearly hints at a less viable, manipulative future for the drug cartels.
“I am working on a new system where there will be competition in the Drug Industry,”
“Pricing for the American people will come way down!”
I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!
— Donald J. Trump (@realDonaldTrump) March 7, 2017
Trump hasn’t extended on any of these thoughts too in depth, so we are left to our own imaginations in terms of what types of legislations we may see on the house floor in future months. But we do see a heavy potential for change, as does Pharma and as does investors, who began the process of “uninvesting” shortly after the tweet went live.
Shares of Mylan, (MYL) dropped off 1.6%. This is the drugmaker behind the epipen price hike scandal (seems investors precisely noted where Trump’s hammer may be most destructive in terms of P&L sheets).
“I think it’s incumbent upon us as an industry to price responsibly,” Johnson & Johnson CEO Alex Gorsky explained during a conference call with investors.
There are new days ahead, no doubt about it.