Prior to his inauguration, then-President-elect Trump spoke at a press conference in New York City about pharmaceutical prices on Jan. 11, saying companies were “getting away with murder,” according to Bloomberg. He said, “Pharma has a lot of lobbyists and a lot of power and there is very little bidding. We’re the largest buyer of drugs in the world and yet we don’t bid properly and we’re going to save billions of dollars.”
After those remarks, stock prices for pharmaceutical companies plummeted around the world while the Nasdaq Biotechnology Index fell 3 percent and Standard & Poor’s 500 Pharmaceuticals, Biotechnology & Life Sciences Index dropped 1.7 percent.
Here are 17 companies that reported stock price drops the afternoon after the speech, starting with the most-affected:
1. Endo International (Malvern, Pa.): 8.5 percent1
2. Perrigo (Allegan, Mich.): 6.9 percent
3. Mallinckrodt (St. Louis): 6.2 percent
4. Bristol-Myers Squibb Co. (New York City): 5.3 percent2
5. Novo Nordisk A/S (Bagsvaerd, Denmark): 5.2 percent3
6. AbbVie (North Chicago, Ill.): 4.2 percent
7. Astellas Pharma (Tokyo): 3.9 percent4
8. Celgene (Summit, N.J.): 3.5 percent2
9. Dr. Reddy’s Laboratories (Hyderabad, India): 3.3 percent3
10. Takeda Pharmaceuticals (Osaka, Japan): 2.8 percent4
11. Pfizer (New York City): 2.8 percent2
12. Eli Lilly (Indianapolis): 2.6 percent
13. Gilead (Foster City, Calif.): 2.3 percent
14. Eisai Co. (Tokyo): 2.3 percent4
15. Amgen (Thousand Oaks, Calif.): 2.2 percent2
16. Johnson & Johnson (New Brunswick, N.J.): 1.6 percent
17. Nikkei (Tokyo): 1.3 percent4
The companies are in various stages of recovery, although most have not reached pre-speech levels.
References:
1. Los Angeles Times. “Stock close up; drug firms dive after Trump says they’re ‘getting away with murder'”: http://fortune.com/2017/01/11/donald-trump-press-conference-biopharma-stocks/
2. Fortune. “Big Pharma Lost $24.6 Billion in 20 Minutes During Donald Trump’s Press Conference”: http://fortune.com/2017/01/11/donald-trump-press-conference-biopharma-stocks/
3. Bloomberg. “Drug Stocks Plunge as Trump Threatens to Force Price Bidding”: https://www.bloomberg.com/news/articles/2017-01-11/drug-stocks-plunge-as-trump-threatens-to-force-price-bidding
4. Business Insider. “Nikkei falls to near 2-week low after Trump’s speech disappointments”:http://www.businessinsider.com/r-nikkei-falls-to-near-2-week-low-after-trumps-speech-disappoints-2017-1
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