Before a widely anticipated speech that President Trump is slated to give next week about drug pricing, one analyst cautions both drug makers and their cheerleaders on Wall Street that their world is about to change – big time.
In a pointed note, Wells Fargo analyst David Maris makes clear the ironic dilemma facing the pharmaceutical industry: The enthusiasm for “incredible innovation” is tempered by a public that is “increasingly hostile” to paying for breakthroughs and advances. Why? He cites “unconscionable” price hikes that have “hardened” many opinions.
“We believe the U.S. is on a longer-term arc toward price controls and lower margins, as there is an uprising that has been percolating for years against high drug prices. While the causes are many and the problem much more complicated and nuanced than many others would lead readers to believe, there is a rebellion at hand,” Maris wrote.
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