As President Donald Trump said on Friday afternoon that he signed four executive orders to cut drug prices, pharmaceutical company shares closed with losses.
The drug pricing orders “may illustrate the Trump administration’s efforts to support a major constituency problem, which has pushed President Trump and other republicans ahead of the election,” he added. analysts from Height Capital Markets in a note Friday.
Trump said the first order “requires the federal community health centers to directly pass on the huge discounts they receive from pharmaceutical companies on insulin and EpiPens to their patients,” while the second allows a number of drug imports and takes the third discount from middlemen such as pharmacy benefits manager and give them to patients.
The fourth order requires Medicare to purchase drugs at the same price as those paid abroad, Trump said. It “will put an end to worldwide free charging on the backs of US patients and US seniors,” he said.
As a result of the orders, heads of major pharmaceutical companies requested a meeting on Tuesday to discuss how to cut drug prices and out-of-pocket costs for Americans, the president added. If the talks are successful, the administration may not need to execute the fourth execution order, he said.
Pharma Shares, as tracked by the Invesco Dynamic Pharmaceuticals ETF PJP,
ended 1.6% lower, while the broad S&P 500 index SPX,
fell only 0.6% Friday.
Trump has often stated over the years that pharmaceutical companies are “getting away with murder” and prices are “getting out of hand”, although he has talked to pharmacists this year as their companies are working on a coronavirus vaccine.
From the archives:Drug producer lobbying is 10-year high as Washington focuses on rising prices
And read:Pelosi’s Drug Prices Bill Passes House, But Pharma Shares Rise As It’s Unlikely To Become Law
MEDAL FOR RYUN, BARSTOOL SPORTS INTERVIEW
Trump presented the Presidential Medal of Freedom to the legendary runner and former Republican Rep. Jim Ryun of Kansas on Friday morning.
The President has talked about the role of sport in the US recovery, and one White House spokeswoman tweeted late Thursday that he sat down for an interview on the subject with Barstool Sports founder Dave Portnoy, who has recently gained support as a day trader.
Related:Baseball is back – that’s how American sports leagues return during the pandemic
Trump did not intend to hold a 5 p.m. Eastern Time coronavirus briefing on Friday after holding one for three days in a row. He announced during Thursday’s briefing that he will be deleting the Florida component of next month’s Republican National Convention as COVID-19 cases increase in that state.