Healthcare weaker on Trump comments:

  • Healthcare worst performer today. Biotech and pharma under outsized pressure. Renewed scrutiny surrounding drug pricing getting the blame. In interview with Time Magazine, Trump said that “I’m going to bring down drug prices. I don’t like what’s happened with drug prices.” Recall that in initial aftermath of the election, biotech and pharma rallied on thoughts that cracking down on prescription drug prices would less of a priority in a Trump vs a Clinton administration. However, enthusiasm has faded in recent weeks as some pharma executives said they expect rhetoric to remain elevated. Allergan (AGN-US) CEO Brent Saunders recently noted that “I worry today that the pharmaceutical industry has a very false sense of relief or security because of a Trump administration and Republican-controlled Congress.” At the same time, early sell-side commentary has reiterated the same stumbling blocks highlighted when Clinton was expected to win: the lack of Republican support for legislative changes.