Trump says pharmaceutical companies ‘getting away with murder’

Trump says pharmaceutical companies ‘getting away with murder’

U.S. President-elect Donald Trump said pharmaceutical companies are “getting away with murder” in what they charge the government for medicines, and promised that would change.

After his remarks, the Ishares Nasdaq Biotech ETF dropped 4 percent at its session low and was on track for its largest daily percentage drop since late June. Trump has blasted other industries for charging the government too much, particularly defense companies Lockheed Martin Corp and Boeing Co, but has made only a few public statements about drug pricing since being elected.

After his promise during a news conference, the ARCA pharmaceutical index fell 2 percent as Pfizer Inc gave up 2.6 percent and Johnson & Johnson fell 1 percent. Biotech Gilead Sciences Inc fell 2.3 percent.

The drug industry has been on edge for two years about the potential for more government pressure on pricing after sharp increases in the costs of some life-saving drugs drew scrutiny in the press and among lawmakers. The government is investigating Medicaid and Medicare overspending on Mylan NV’s allergy treatment EpiPen, for instance.

Trump’s campaign platform included allowing the Medicare healthcare program to negotiate with pharmaceutical companies, which the law currently prohibits, and he has also discussed making it easier to import drugs at cheaper prices.

“We are going to start bidding. We are going to save billions of dollars over time,” Trump said.

Medicare, which covers more than 55 million elderly or disabled Americans, spends hundreds of billions of dollars on drugs every year.

Industry trade group Pharmaceutical Research and Manufacturers of America did not have an immediate comment.

Daniel O’Day, CEO of Roche Pharmaceuticals, a division of Roche Holding AG, said in an interview on the sidelines of the JP Morgan Healthcare conference in San Francisco that the company focuses on innovation and investing in research.

Price increases over the past several years have been “responsible” and in the range of low to mid single digits, he said.

Reuters
follow us on twitter @aljazirahnewsng

Like us on Facebook @aljazirahnewsng

Related Posts

U.S. announces additional $30m aid for North East The United States has announced an additional $30m as humanitarian aid for the people of the North East. The US Embassy said in statement on Friday that the additional funding would bring the total U.S. humanitarian contribution in Nigeria to more than $298m since October 2015. The funding, accord...
Zimbabwe, S/Africa bicker over robbery accusation Tensions between Zimbabwe and South Africa grow higher as the two Southern African countries bicker over accusations of bank robberies in South Africa. Zimbabwe reacted angrily to a South African minister’s claims that its soldiers were behind bank robberies. South Africa’s Police minister Fikile ...
School alertsalerts parents, carers of ‘suicide games’... By Lubem Gena Premier International school, Abuja has called on parents and guardians of their students to guard them watching games that have the possibility of calling on them (students) to commit suicide at a particular stage. This was contained in a letter signed by the head of the school,...
Obiano pledges to sustain relationship with China    ...considers diplomatic office in Awka By Kingsley Ezekwelu  The Governor of Anambra state Chief Willie Obiano has assured to sustain the existing robust relationship with the Republic of China to continue producing enduring economic benefits for Ndi Anambra.  Gov Obiano disclose...
President Lungu denies threatening Catholic church in Zambia Zambian President Edgar Lungu on Friday denied reports that he threatened the Catholic Bishops over their statement on the current political situation in the country. On Sunday, the Catholic Bishops issued a statement in which they expressed concern over the political situation in the country follo...
Dangote to pump N106b into sugar refinery Alhaji Aliko Dangote, Chairman, Dangote Sugar Refinery (DSR) on Thursday said that N106 billion would be invested in the company to boost profitability and enhance dividend payment. Dangote told shareholders at the company’s 11th Annual General Meeting (AGM) for 2016 financial year in Lagos that th...
PDP Crisis takes new dimension as Sheriff finally dumps Jona... The Chairman of the Peoples Democratic Party(PDP) Sen. Ali Modu Sheriff said he was pulling out the reconciliation move of the former President Goodluck Jonathan to resolve the party’s leadership crisis. Sheriff in a statement signed by his Deputy National Chairman, Dr Cairo Ojougboh issued on Thur...
NLC calls for use of recovered loot to increase worker’s sal... Mariam Sanni, Abuja     The Nigeria Labour Congress  (NLC) has called on the federal government to use the money said to have been recovered from corrupt persons in the country since the inception of the present administration to increase workers’ salaries. The call was made by...
North Korea defies US, China in new missile test North Korea, defying intense pressure from the United States and China, test-fired a ballistic missile on Saturday from a region north of its capital. But the test appears to have failed, South Korea’s military said. Yonhap news agency said the missile appeared to have blown up a few seconds into f...
Obiano charges papal Knights to be model for all seasons By Kingsley Ezekwelu The Governor of Anambra State Chief Willie Obiano said that his administration is determined to propel the state to greatness through strategic well-thought out plans, marshaled out to transform the state from dependent economy to that of self sufficiency and progressive econ...
Customs officials finds $1.3m in Dusseldorf airport luggage The Customs officials on Friday found 1.3 million dollars in luggage at Dusseldorf Airport. Police said that they have started investigating whether the money is connected with drug trade, since most of the money was in small notes. The notes were found in the luggage of two travellers who wer...
Sacked South Africa finance minister warns of ANC meltdown South Africa’s former finance minister Pravin Gordhan, who was dramatically fired by President Jacob Zuma, has warned that the ruling ANC party could lose power in the next election. Gordhan — widely seen as a bulwark against government corruption in South Africa — also appeared to back deputy pr...
U.S. says failure to act on North Korea could be catastrophi... U.S Secretary of State Rex Tillerson warned on Friday that failure to curb North Korea's nuclear and missile development could lead to 'catastrophic consequences,' while China and Russia cautioned Washington against threatening military force. Washington has recently lavished praise on Beijing fo...