Confirmation that Donald Trump will be the next president of the United States has had a substantial negative impact on global markets.
But there is one sector in Europe that looks like it could be in for a pretty hefty boost from a Trump presidency — the pharmaceuticals industry. (...)
However, on Wednesday, pharmaceutical stocks are jumping, with FTSE 100-listed Hikma Pharmaceuticals up almost 6% as of 9.50 a.m. GMT (4.50 a.m. ET). Here's how it looks...
Other pharmaceuticals companies are also charging, with Swiss listed giants Roche and Novartis both up by more than 4%, while British GlaxoSmithKline is around 1.8% higher.
Markets think that a Trump presidency could bring to an end the potential for "draconian" new pricing rules on drugs in the wake of scandals over prices. The issue was first sparked by drug company Retrophin's "pharma bro" CEO Martin Shkreli when he announced that he was increasing the price of an antiparasitic drug from $13.50 to $750 per pill. Price hikes for the anti-anaphylaxis medicine EpiPen then fuelled more outrage.
However, under a Trump presidency the likelihood of new legislation controlling the pricing of drugs and healthcare services is severely decreased.
In the bank's weekly European Equity Strategy note, circulated to clients earlier this week, Deutsche Bank analysts led by Tom Pearce argue that: "European healthcare would likely outperform under a Trump win, given it has moved inversely to the probability of a Clinton victory over the past couple of months and has historically done well in periods of rising macro uncertainty and dollar strength."
US-based investment bank Jefferies said on Wednesday morning: "Sentiment towards the Healthcare sector ought to swing initially away from draconian fears over drug pricing."(Más)
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