'In a strong indication that investors and major pharmaceutical companies know President Donald Trump's newly unveiled drug plan "will do nothing to rein in their greed," Big Pharma stocks soared on Friday as Trump delivered a brief and extremely vague speech promising to lower drug costs that critics called a "cover-up for the sweetheart deal" he's offering America's price-gouging drugmakers.
— Axios (@axios) May 11, 2018
"When big pharmaceutical companies' stocks spike during your big reveal on lowering prices, you're doing something wrong," Brad Woodhouse, campaign director of Protect Our Care, said in a statement following Trump's speech on Friday. "Don't be fooled: President Trump and his administration are bought and paid for by Big Pharma."
Topher Spiro, a senior fellow at the Center for American Progress, argued that a major reason pharma stocks rose as Trump formally announced his plan is because the president placed blame for high U.S. drug prices on the low prices in nations with "socialized healthcare"—exonerating American drug giants from any blame for soaring costs.
Instead of tackling high U.S. prices, Trump effectively promised to work to "boost prices abroad," which is the drug industry's "number one priority," Spiro notes.'
Read more: After Drug Plan Shows Trump 'Will Do Nothing About Their Greed,' Big Pharma Stocks Soar