Donald Trump took aim at drug makers, promising in a magazine interview that he was going to bring down drug prices, resulting in shares of U.S. pharmaceutical and biotechnology companies to fall. In a cover story for Time magazine, which named him its Person of the Year, Trump said that he didn't like what has happened with drug prices.
According to Reuters, Trump did not state in the interview how he would reduce drug prices. Trump previously has suggested he was open to allowing importation of cheaper medicines from overseas, a move that has been consistently opposed by the pharmaceutical industry and U.S. health regulators. The pharmaceutical industry is the latest targeted by Trump. On Tuesday he took aim at a leading aerospace company, urging the government to cancel an order with Boeing Co for a revamped Air Force One, the presidential plane, because it was charging too much.
Investors initially greeted Trump's victory as a boon for drug and biotech stocks, with the Nasdaq Biotech Index up as much as 12 percent in the two days after the election. The biotech index, which is down about 10 percent from its recent peak, on Wednesday fell nearly 4 percent to its lowest level since the election.