Will Trump tweet on Pfizer cut short the pharma rally?

A tweet by US President Donald Trump slamming Pfizer and other pharma companies for raising prices of drugs at will sent Indian pharma shares reeling on Tuesday morning.

Top pharma stocks traded in the red in morning trade, prompting analysts to wonder if it would cut short a rebound in these stocks that begun last month.

Pfizer India shares slipped 0.27 per cent to trade at Rs 2,539 on BSE at around 10.10 am (IST), while Sun Pharma traded 0.83 per cent down at Rs 564. Lupin and Aurobindo Pharma fell 0.44 per cent and 0.81 per cent, respectively.


However, on Nasdaq, Pfizer shares closed 0.13 per cent higher at $34.16 in overnight trade.

In his tweet, Trump said, “Pfizer & others should be ashamed that they have raised drug prices for no reason. They are merely taking advantage of the poor and others unable to defend themselves, while at the same time giving bargain basement prices to other countries in Europe and elsewhere. We will respond!”


On July 1, Pfizer increased prices of over 40 drugs including viagra. It was followed by other pharma companies.

“Our portfolio includes more than 400 medicines and vaccines; we are modifying prices for approximately 10 per cent of these, including some instances where we’re decreasing the price,” a PTI report quoted a Pfizer official as saying.

The list prices do not reflect what most patients or insurance companies pay due to rebates to payers and others in the supply chain, Pfizer said.