Biotechs and biopharmas under pressure ahead of Trump order on drug prices

Biopharma and biotech players are mostly in the red (again) ahead of an expected executive order from President Trump aimed at corralling U.S. drug prices. Specifically, the order will contain a “favored nation” clause that will be the basis for Medicare reimbursement, i.e., the reimbursement rates will match those in the country paying the lowest prices instead of an index of drug prices from around the world.

Pushback from manufacturers should be substantial. The fireworks will, no doubt, be good theatre.

ETFs: BIB, GRX, THW, BME, BIS, IXJ, ARKG, CHNA, IDNA, XLV, XBI, PJP

Selected tickers: Amgen (AMGN -2.5%), Biogen (BIIB -2.1%), Gilead Sciences (GILD -2.5%), Vertex Pharmaceuticals (VRTX -1.7%), Merck (MRK-2.2%), Eli Lilly (LLY -1.4%), Bristol-Myers Squibb (BMY -1.1%), Pfizer (PFE-1.7%), Novartis (NVS +0.3%), Roche (OTCQX:RHHBY -0.7%), AbbVie (ABBV -2.5%), Bausch Health Companies (BHC -2%), Teva Pharmaceutical Industries (TEVA -2.3%), AstraZeneca (AZN -0.5%), GlaxoSmithKline (GSK-0.5%), Johnson & Johnson (JNJ +0.1%), Takeda (TAK -0.6%), Allergan (AGN -1.3%)

https://seekingalpha.com/news/3476265-biotechs-biopharmas-pressure-ahead-trump-order-drug-prices