Pharmaceutical stocks and bonds were among the day’s biggestwinners as the sweeping Republican victory in U.S. elections easedconcern that price controls might be imposed in the world’s largestmarket for prescription medicines.
Even as drug companies rallied, other parts of the health sectorplunged. President-elect Donald Trump’s vow to repeal the Affordable Care Act sent shares of hospitalchains and insurers tumbling on the possibility that millions ofcustomers could lose coverage, disrupting the industry again just afew years after the landmark law took effect.
Pfizer Inc., the biggest U.S. drugmaker, rose8.5 percent to $32.55 at 1:55 p.m. in New York. Health insurerCentene Corp. dropped 17 percent and Molina Healthcare Inc. slid 15 percent.Community Health Systems Inc. led declines by the three largestpublicly traded hospital companies, down 25 percent.
‘Sigh of relief’
“Most biotech and pharma companies might be sighing a sigh ofrelief because Mrs. Clinton looked like she might do somethingdrastic on drug pricing,” Clive Meanwell, chief executiveofficer of Medicines Co., said by phone. Trump, he said, mayhave other priorities. “I suspect he’ll have bigger health-caretopics to take on first.”
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