Trump Tweet Targets Pfizer’s Recent Price Increases

Large Cap Biotechs Gain

The Biogen (BIIB) catalyzed rally has stalled on another tweet on drug pricing from POTUS. You’ll remember in May the market was worried about potential drug policy changes from the Trump Administration but because few details emerged the concerns evaporated and a rally ensued. The tweet target this time was Pfizer (PFE) which got slammed for drug price increases after July 1. Trump has been a promising action for lower U.S. drug prices but nothing has materialized as of yet. We are still awaiting”self-regulation” on drug price hikes. Pfizer (PFE) stock was flat for the day at $37.16.

Although large mega cap global drug companies are most affected by drug pricing rhetoric, the sentiment can spill over to large-cap biotech in the past.

You know that Trump targeted the Saudis and OPEC on oil prices with tweets recently but if Iran gets cut back supply gets further diminished and prices can move up. WTI crude is now $74.06 at one-year highs.

Here are some of the major ETFs with large cap focus, slightly up.

IBB up 0.83% to $116.83

XLV up 0.67% to $86.59

XPH up 1.06% to $44.86

Large cap biotech stocks on our portfolio picks today: AMGN up 1.65%, BIIB off 0.97%, CELG up 1.71%, GILD up 1.9%.

Just the other day we were reading that healthcare was the place to hide from a step-up in the trade wars but we see other news buffeting the sector like this news yesterday on Trump suspending insurance payments.