Shares of US-based pharmaceutical giants Pfizer, Valeant, and Gilead have responded to Trump’s victory
As we all know by now, Donald Trump has been victorious in the 2016 elections. The global markets have started to respond by plunging. Pharmaceutical giants in the US like Pfizer Inc. (NYSE:PFE), Valeant Pharmaceuticals Intl. Inc. (NYSE:VRX), and Gilead Sciences, Inc. (NASDAQ:GILD) have also seen their stocks responding to this development.
Trump has given out a 7-point policy for healthcare which outlays the steps that would be taken once he gets elected. These steps include repealing the Obamacare act, reducing the existing barriers on sale of health insurance between states, establish a full tax deduction for premium payments of insurance, make the health accounts inheritable, block the grant provided to states in Medicaid, and allow overseas producers of drugs by reducing the regulatory barriers in place. He further stated that reducing the cost of immigrants for healthcare will also be beneficial for the economy.
The latest election survival guide given out by Credit Suisse states that the policies of Trump might be good news for the sector. Owing to pricing concerns, stocks in the pharma sector probably won’t outperform as the markets would rather go down.
The effects of Trump winning the election have started taking their toll on the markets already. Pfizer shares were up 6.07% at 5:50 AM EST today, at $31.82. The same stock closed in the red in the last session.
Valeant Pharmaceuticals is struggling to keep up with the rest of the market. The company posted its earnings yesterday and dissuaded investors by posting unfavorable results. The drug maker lost 21.69% of its value in the last session and was expected to follow the same trend today. However, after Trump’s unexpected victory, the stock traded in the green in pre-market hours today as shares ticked up 3.14% to $15.45 apiece as of 5:55 AM EST.
Gilead Sciences stock has also been rising in pre-market hours today. The stock rose 3.55% at 5:51 AM EST, trading at $76.69. The pharmaceutical sector is seen benefitting from Trump’s election victory as most stocks in this sector are trading in the green.