Is Trump tough on Big Pharma? No way!
When he won the Presidency of the United States, Donald Trump talked tough on Big Pharma. Using his favoured means of communication, the President opined on Twitter that drug prices were out of control, and the industry needed stricter policing. Though that rhetoric has persisted, however, the President has shown little actual impetus in applying the tough measures that some market watchers felt was on the cards. In fact, he looks pretty lenient!
Perhaps the scariest possible regulations that Trump could pursue, for the pharmaceutical industry, are those that give greater negotiating power to the government, and limit drug monopolies. As Mr. Trump’s administration gets further into its first term, those are looking increasingly unlikely.
President Trump has actually been pretty keen to meet with representatives of the biggest players in the pharmaceuticals industry. And the majority of actions the White House seems to have on the table (like loosening the FDA’s approval standards, and extending Big Pharma’s overseas drug monopoly protections) would likely bolster the biggest drug makers, and stand in opposition to lower drug prices.
President Trump has certainly proved to be a difficult politician to predict, so investors should perhaps retain the specter of skepticism over the pharmaceutical industry’s prospects in the U.S. But one thing is for sure: the strict policing many thought was on the table seems to have been taken off it for now.
Dominion holds a number of pharmaceutical companies, such as Novartis, in its Global Trends Managed Fund.
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