Drug Pricing May Finally Come to a Head With Trump Speech Friday
- Analysts don’t expect near-term impact from White House plan
- Rebates are key to debate that has been overhang on stocks
White House Planning for Fundamental Shift in Drug System
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After more than a year of bitter rhetoric attacking pharmaceutical companies and the cost of medicines, President Donald Trump is scheduled to finally release his plans to combat drug pricing on Friday.
The near-term implications for biotechnology and pharmaceutical stocks remain murky on Wall Street. Cowen analysts said in a research note Thursday that they expect Trump’s speech will “be relatively benign, with more drastic proposals coming at a later date or not at all.” Wells Fargo & Co.’s David Maris, meanwhile, has cautioned that calls for lower prices and greater transparency have “never been louder.