Davos WEF
Davos WEF

Health care turmoil in the US is only temporary: Philips CEO

Need for good healthcare is a certainity: Philips CEO

Turbulence and turmoil in the health care industry will only prove to be temporary in spite of the uncertainties in the U.S., according to Royal Philips' chief executive.

Frans Van Houten, chief executive of the medical equipment and technology firm, described the current situation in the U.S. health care industry as "uncertain" however he remained confident the negative sentiment surrounding health care stocks would be reversed in time.

"I am sure that whatever turmoil and turbulence there is, (it) is a temporary matter and that as the dust settles, this thrust for innovation to make people healthier and the world more sustainable is still going to go on," van Houten told CNBC on Monday in Davos, Switzerland when asked about Trump's influence on the health care industry.

Jasper Juinen | Bloomberg via Getty Images

"The situation in the U.S. is a bit uncertain right now as the repeal and replace is being discussed but we are confident," van Houten added, hinting at the repeal of the 2010 Affordable Health Care Act (ACA), often called Obamacare.

Republican politicians in the U.S. took the first steps to repeal part of the ACA by passing a resolution bill last week.

Investor optimism regarding the outlook for the broader health care sector in Europe and the U.S. declined dramatically after Trump's press conference last Wednesday in which he promised to take action over drug pricing.

Trump said the drug industry in the U.S. was "disastrous" and pharmaceuticals had been "getting away with murder" during his first press conference as President-elect on Wednesday.

Correction: This article has been updated to reflect that Frans Van Houten said that turbulence in health care in the U.S. would only be temporary.

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