When the American president says an industry is “getting away with murder”, don’t be surprised if share prices in that industry are somewhat depressed.
This soundbite was among Donald Trump’s pre-inauguration utterances on the subject of drug prices. There have been many follow-ups, including a tweet last week in which he promised that “[drug] pricing for the American people will come way down”.
To some extent, the share price of any company connected with the drugs market is affected by this kind of political attack. But not every company is equally exposed.
This week’s tip is an American company called Amerisource Bergen. As a distributor of drugs rather than a manufacturer, it will be among the less affected stocks if US drug prices are forced lower. However, the political uncertainly around the whole industry is among the reasons for the undemanding valuation of shares in what remains...
Register for free and access one Premium article per week
Enjoy unlimited access to Premium articles with a subscription
- Subscriber-only events and experiences
- Access Premium articles on our mobile app
30-day free trial
then only £2 per week