Sanofi and other pharmaceutical companies around the world saw the stock value tumble after Trump used part of his chaotic press conference the day before to say that the US should negotiate better prices from drug companies.
According to French financial newspaper Les Echos the value of Sanofi has dropped by a total of 2.7 percent since Trump’s much-talked about press conference on Wednesday.
“Since yesterday, at 17:18, when Donald Trump spoke about pharmaceuticals, Sanofi has lost exactly 2.71%, which brought it back below the 100 billion euros threshold that it had so much trouble conquering,” writes Les Echos.
The drop resulted in France’s stock exchange the CAC 40 finishing the day only even, when it had been set to make gains.
US president-elect Trump said at his press conference in New York that he would make the pharmaceutical industry bid for government contracts.
“There's very little bidding on drugs. We're the largest buyer of drugs in the world. And yet we don't bid properly. We're going to start bidding,” Trump said.
US law currently does not allow federal insurance programme Medicare to negotiate drug prices, essentially allowing the pharmaceutical industry to set their own drug prices.
“They’re getting away with murder,” Trump said about the industry. “Pharma has a lot of lobbyists and a lot of power and there is very little bidding.”
It wasn’t just French pharmaceutical companies that felt the immediate effects of Trump’s pledge. The trend was replicated on stock markets across Europe on Thursday morning, with pharma firms also underperforming in Denmark, Spain, Germany, France, Switzerland and Italy.