×

Investors urged 'not to read too much' into Trump's 'bring down drug prices' promise

Pay no attention to that man behind the tweets.

A health-care analyst on Wednesday urged investors "not to read too much into" President-elect Donald Trump's promise that "I'm going to bring down drug prices."

Donald Trump speaks to supporters during a town hall meeting on March 14, 2016 at the Tampa Convention Center in Tampa , Florida.
Brian Blanco | Getty Images
Donald Trump speaks to supporters during a town hall meeting on March 14, 2016 at the Tampa Convention Center in Tampa , Florida.

That vow by Trump, made in an interview with Time magazine, sent stock prices of prescription drug companies plummeting Wednesday.

Trump told Time, which named him "Person of the Year," that "I don't like what has happened to drug prices." The billionaire real-estate developer had made similar promises during the presidential campaign to control drug prices.

But Chris Meekins, health policy research analyst at FBR & Co., said "these Trump comments are being blown way out of proportion."

FBR also issued a note entitled "Ignore Trump Drug Prices Comments in Time Magazine."

"Personnel is policy, and Trump's appointment to lead the Department of Health and Human Services, Dr. Tom Price, would not support government price regulations on pharmaceutical prices," the note said.

"Second, Congress would have to take any significant actions on drug pricing and Republicans control both chambers," the note said. "There is no way a majority of Republicans in the House ... would support changes."

The note also said that "Trump made his comments after what was likely a leading question from a reporter."

"During the campaign he said he supported Medicare negotiating drugs prices when he thought Medicare should negotiate," the note said. "As the author of 'The Art of the Deal,' he wants to negotiate everything so it is no surprise he would say yes. We believe this is another example of this."