Shares of nine pharma companies fell by 0.15% to 2.36% at 10:30 IST on BSE after US President-elect Donald Trump during his first press meet promised a complete turnaround in drug pricing.
Meanwhile, the BSE Sensex was up 84.90 points, or 0.31%, to 27,225.31.
Glenmark Pharmaceuticals (down 1.18%), Aurobindo Pharma (down 2.36%), Cipla (down 0.15%), Dr Reddy's Laboratories (down 1.58%), Cadila Healthcare (down 2.13%), Lupin (down 1.27%), Divi's Laboratories (down 0.5%), Wockhardt (down 2.25%) and Sun Pharmaceutical Industries (down 1.5%) declined.
The BSE Healthcare index had underperformed the market over the past one month till 11 January 2017, falling 2.71% compared with the Sensex 1.47% gains. The index had also underperformed the market in past one quarter, declining 7.36% as against Sensex's 3.35% decline.
US President-elect Donald Trump said in his first press conference late yesterday, 11 January 2017 that pharmaceutical companies were getting away with murder with respect to drug pricing and promised a complete turnaround, making healthcare less expensive and better.
He said that US is the largest buyer of drugs in the world, and yet, the country does not bid properly, prioritising bringing back drug industries back to the US. He added that US firms would start bidding and save billions.
Trump also said he would repeal and replace Obamacare-the country's existing affordable healthcare legislation-shortly after price approvals, which could impact pharma companies.
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