New York – U.S. President-elect Donald Trump on Wednesday said pharmaceutical companies are “getting away with murder” in what they charge the government for medicines, and promised that would change.
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After his remarks, the Ishares Nasdaq Biotech ETF
After his promise during a news conference, the ARCA pharmaceutical index fell 2 percent as Pfizer Inc
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
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
Price increases over the past several years have been “responsible” and in the range of low to mid single digits, he said.