Pharmaceutical stocks and bonds were among the day’s biggest winners as the sweeping Republican victory in U.S. elections eased concern that price controls might be imposed in the world’s largest market for prescription medicines.
Even as drug companies rallied, other parts of the health sector plunged. President-elect Donald Trump’s vow to repeal the Affordable Care Act sent shares of hospital chains and insurers tumbling on the possibility that millions of customers could lose coverage, disrupting the industry again just a few years after the landmark law took effect.
Pfizer Inc., the biggest U.S. drugmaker, rose 8.5 percent to $32.55 at 1:55 p.m. in New York. Health insurer Centene Corp. dropped 17 percent and Molina Healthcare Inc. slid 15 percent. Community Health Systems Inc. led declines by the three largest publicly traded hospital companies, down 25 percent.
‘Sigh of relief’
“Most biotech and pharma companies might be sighing a sigh of relief because Mrs. Clinton looked like she might do something drastic on drug pricing,” Clive Meanwell, chief executive officer of Medicines Co., said by phone. Trump, he said, may have other priorities. “I suspect he’ll have bigger health-care topics to take on first.”
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