On Trump’s Victory: Drugmakers Jump After Price Concerns Are Relieved
The world's largest creator of drugs for cancer, Roche Holdings AG, has shown an increase of 4.4 percent in Zurich. France's Sanofi in Paris gained 2.9 percent while Copenhagen's Novo Nordisk A/S climbed to 4.8 percent. Recorded as the most intraday since 2011, Bloomberg EMEA Pharmaceutical Index has increased to as much as 5.1 percent despite the slump on the larger market. The Indian generic-drug makers, on the other hand, which sell and manufacture drugs to the US, has also shown an increase.
Despite his call for the revocation of Obamacare, President-elect Donald Trump has presented very little in the schemes of health policy plans. For the record, Obamacare has already provided insurance to at least 20 million people in America and had kept up several hospitals and insurers. During the campaign of Hillary Clinton, she had made the prices of drugs a key aspect to entice the votes of the people of America. More so, there were stipulations that the possibility of her administration could place significant pressure on drug prices in the country.
In an interview on Wednesday, GAM Holdings AG in Zurich's Fund Manager Christophe Eggmann said: "Trump doesn't have big health-care plans. The only thing he was talking about was repealing Obamacare. But all the proposals from Hillary Clinton that could have affected drug pricing and companies -- this is not going to happen."
While the Democrats have owned the White House, Republicans have retained the majorities in the House and in the Senate. Therefore, lawmakers may still be able to formulate extensive changes to the health policy of the US including the repeal of several parts of the Affordable Care Act. The Affordable Care Act or the ACA has produced markets where individuals may purchase health insurance, frequently with financial assistance and also gave states funding to spread out their Medicaid programs to more people who cannot afford to buy medicines. The law has also touched several changes to insurance regulations and certain number of taxes.
Last month, former secretary of Health and Human Services Tommy Thompson said that a Trump presidency is expected to remove the tax increase to drug prices.
The remarkable 2016 US Presidential Elections was capped by the Democrat's Trump's victory.