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Home Main Forums Latest Breaking News Drug Stocks Plunge as Trump Threatens to Force Price Bidding

  • Purveyor (2622 posts)
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    Drug Stocks Plunge as Trump Threatens to Force Price Bidding

    *‘We’re going to save billions,’ Trump says of proposed change
    *Biotech index drops 3%, large drugmaker stocks down 1.7%

    by Zachary Tracer and Anna Edney
    January 11, 2017, 11:30 AM ESTJanuary 11, 2017, 4:24 PM EST

    Pharmaceutical and biotech stocks plummeted Wednesday after President-elect Donald Trump said he’d force the industry to bid for government business, a position that aligns him with congressional Democrats and against the powerful drug-manufacturing lobby.

    “They’re getting away with murder,” Trump said at a press conference in New York. “Pharma has a lot of lobbyists and a lot of power and there is very little bidding. We’re the largest buyer of drugs in the world and yet we don’t bid properly and we’re going to save billions of dollars.”

    The industry is the latest target of a president who’s made a habit of negotiating via Twitter. The Nasdaq Biotechnology Index fell 3 percent in New York, and the Standard & Poor’s 500 Pharmaceuticals, Biotechnology & Life Sciences Index dropped 1.7 percent, the biggest one-day drops for the indexes since October.

    Investors had been betting that Trump would be good for the industry — drug and biotech stocks had gained since his election — but it now appears the Republican may take up the banner Democrats carried during the campaign and lock onto drug prices as an issue that hits many Americans in their wallets.




    Drug Prices: Costs and Outrage Rise in the U.S.

    By Robert Langreth | Updated Jan 11, 2017 8:08 PM UTC

    Americans spend more on prescription drugs — average costs are about $1,100 per person per year — than anyone else in the world. It’s true that they take a lot of pills. But what really sets the U.S. apart from most other countries is high prices. Cancer drugs in the U.S. routinely cost $10,000 a month. Even prices for old drugs are spiking, as companies buy up medicines that face no competition and boost charges. While private insurers and government programs pick up the biggest share of the bill, high drug costs are ultimately passed down to the public through premiums and taxes. More than three-quarters of Americans in one poll said that the federal government should make drug affordability its first health-care priority. President-elect Donald Trump vowed to bring down prices.

    The Situation

    Drug companies increasingly have become the subject of outrage andscrutiny in the U.S. Lawmakers have probed how they set prices, and the Justice Department is investigating possible price collusion by more than a dozen companies that make generic drugs. Some politicians have accused drugmakers of price gouging. Trump says they’re “getting away with murder.” Martin Shkreli became a symbol of greed in 2015 when the company he then headed, Turing Pharmaceuticals, bought rights to an old anti-parasitic drug and raised its price more than 50-fold to $750 a pill. Turing later offered hospitals discounts on the drug of up to 50 percent. Prescription drug spending in the U.S. began to surge in 2014 after six years of increases held down by the spread of generic drug use. It rose 8.5 percentin 2015. Specialty drugs (high-cost treatments, mostly for complex conditions) account for much of the spending growth. The current backlash first erupted in 2013 when Gilead Sciences released the groundbreaking hepatitis cure Sovaldi at $84,000 for a 12-week course. The steep price and stampede of patients to get the drug led many insurers to restrict coverageto the sickest patients.


    The Background

    Unlike other nations, the U.S. doesn’t directly regulate medicine prices. In Europe, the second-largest pharmaceutical market after the U.S., governments negotiate directly with drugmakers to limit what their state-funded health systems pay. The U.K.’s National Health Service has refused to pay for some cancer drugs widely used in the U.S. on the grounds that they don’t constitute value for money. In the U.S., drug companies can more or less set whatever price the market will bear. For most outpatient drugs reimbursed through Medicaid, the public health program for the poor, drugmakers must provide the government rebates. But most medicine costs are paid for by Medicare, the government program for the elderly, or by private insurers. When prescription-drug benefits were added to Medicare under a 2003 law, the pharmaceutical industry successfully lobbied toprohibit the federal government from using its huge purchasing power to negotiate drug prices. Private payers typically rely on third-party pharmacy-benefit managers, such as Express Scripts, to negotiate discounts. Often they make exclusive deals with drugmakers, which limits the choice of drugs patients have. Patients directly pay about 17 percent of prescription medicine costs out of their own pockets. In a 2013 survey, one in five adults in the U.S. said they failed to complete a prescribed course of medicine because of cost. The figure was one in ten in Germany, Canada and Australia.





    OCMI, Ichingcarpenter, Enthusiast and 19 othersspud demon, Pastiche, PADemD, StupidRedhead, Babel 17, em77, ozoneman, bbgrunt, madfloridian, NuttyFluffers, Johnny Rash, mmonk, PennLawyer, Mom Cat, LiberalArkie, Lynetta, night, OzoneTom, frylock like this

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18 replies
  • LiberalArkie (4135 posts)
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    1. Oh Yea

  • night (163 posts)
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    2. He's not totally awful

    if he comes through on some of this stuff.

    I have been taking a med for about fifteen years.  It started out at less than $100 a month and now it is over $800 a month and my insurance company is now not covering it unless my doctor can convince them otherwise.  There is no way I can afford $9600 a year.  So I will literally suffer for the rest of my life if this isn’t covered, because some BigPharma CEO rakes in megamillions.  And I am one of many.

    • Akallabeth (2234 posts)
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      10. The average prescription costs eleven cents a month to make.

      The bottle costs as much to make, or more, than the drug inside it.

      "Out of many, one"
  • NuttyFluffers (1774 posts)
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    3. like wreckingbaaaallll! whee!

    boy, does he know how to collect enemies! and honestly, he’s been collecting plenty of establishment enmity almost as much as he stuffs them in his cabinet…

  • Johnny Rash (1174 posts)
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    4. Well………..that's a start; a good one at that!

    I sure hope that he keeps that up for the next 8 years. 

  • Skink (559 posts)
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    5. Go Trump

    Pretty sure my new ACA plan already accounted for this as a three month supply of 5 diabetics meds cost 15 this month as apposed to the 150 I had been paying.

  • mindwalker (735 posts)
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    6. The stock dip, if I'm reading it correctly, is miniscule

    From 2980 to 2920?  This is on the order to 2%, which isn’t nothing, but it doesn’t seem huge.  But yeah, it’s a really good start.

    Martin Shkrelli (however you spell that dude’s name) should be tied to a post and people be allowed to kick him in the nuts for $10, with proceeds going to fund poor people’s doctor visits.

    Readin'?  That's un-American!  Get your ass in front of a TV!
    • Purveyor (2622 posts)
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      7. These people like Shkrelli (sp?) are going to push to far and some day

      a suffering soul is going to seek out this bastard and get justice.

      Surprised it hasn’t already happened.

      • mindwalker (735 posts)
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        8. I'm sure the little fucker is holed up in his penthouse

        … and only goes out hidden in the back of an armored limo to parties with other people of the same caliber.

        Readin'?  That's un-American!  Get your ass in front of a TV!
        • FanBoy (7983 posts)
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          11. shkrelli is an independent; there's a reason he's the poster boy for the flak

          Taking him down leaves the real architects of pharmacorp in place, fat and happy

          but we don’t know many of their names — and there’s a reason we don’t

        • night (163 posts)
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          16. I thought he was in jail?

  • em77 (2505 posts)
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    9. Go Tump!

    • Fingrinn (11 posts)
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      12. I really feel for you guys

      Socialist New Zealand has good drug prices and subsidised Doctors visits for people with high health needs. Anything between $5-45 per visit. Prescriptions covered by Pharmac the Government drug buying corporation is $5.00 irrespective of the medication so in effect the maximum payable per year is $150.00 (After 30 prescriptions they are free)

      But remember “Socialism is evil”

      What makes our system different is something called ACC (Accident compensation Corporation) where all emergency, surgery and specialist care is free, sure there are waiting lists but that’s the tradeoff. If  injured Anyway, by either work, playing sport or car accident I get 80%  of my earnings as well as free aftercare. If permanently injured I get a lump sum payout as well. If a partner commits suicide that is also classed as an accident and the surviving partner gets compensation for life to offset loss of earnings. In return we gave up the right to sue. If medical negligence is proved, again compensation.

      Taxes? quite high by American standards, but I certainly dont have to worry becoming bankrupt over medical expenses.

      Standard/ quality of living?  Quite high

      Crime? Comparable but lower violent crime to guns being regulated. (police checks)

      Freedom of press? Ranked 2nd in the world, ranked 2nd for least amount of business regulations

      Did i mention im on $23.00 per hour ( not very high) get 4 weeks paid holiday a year under law, as well as 11 statutory holidays. If I work on a public holiday i get paid time and a half,  as well as getting an extra paid day off.

      The point is not to rub your face in it, but simply point out the obvious benefits of a just health system and how it benefits everybody.

      • em77 (2505 posts)
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        13. Welcome to JPR.

      • goodgirl (2180 posts)
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        15. Good for you guys… I mean that, not being snarky.

        They tell us all the time we are the greatest country in the world, and that is no longer true, if it ever was.  I don’t mind paying taxes… I just get tired of bombs being bought with my tax money.

        Welcome to JPR!  :hi:

        Mankind must put an end to war before war puts an end to mankind.    John F. Kennedy
      • Enthusiast (11096 posts)
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        17. Thank you, Fingrinn. A majority of Americans would love to adopt a system

         similar to that of New Zealand.

        The political system in the US simply will not allow it. Corporate interests trump the needs of the citizens in every instance. The legislative process is little more than legal bribery. The “liberal” party, the Democratic Party would be considered far to the right in most advanced nations. The media will not even discuss alternatives to the profit driven health care status quo.

        About the only thing exceptional about the United States today is the military. And this costly military is created entirely at the expense of “we the people”.

        "The NSA’s capability at any time could be turned around on the American people, and no American would have any privacy left, such is the capability to monitor everything. There would be no place to hide."  Frank Church "When plunder becomes a way of life for a group of men in society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat, 1848
  • spud demon (1104 posts)
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    14. Finally, at long last, Pelosi's promise "not to undercut" goes by the wayside!

    Trump might be the closest thing to a socialist we’ve seen so far this millennium.

    Cubs, Google+, Weird Al, BMW
  • Enthusiast (11096 posts)
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    18. Recommended! I'll believe it when I see it.

    "The NSA’s capability at any time could be turned around on the American people, and no American would have any privacy left, such is the capability to monitor everything. There would be no place to hide."  Frank Church "When plunder becomes a way of life for a group of men in society, over the course of time they create for themselves a legal system that authorizes it and a moral code that glorifies it." - Frederic Bastiat, 1848