Shares of health-care companies rose as traders bet the Trump administration wouldn't crack down on drug prices.
An executive order would address price trends in the manner advocated by the drug industry itself, The New York Times reported Tuesday.
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"President Trump is reportedly considering issuing instructions to executive agencies to use value-based contracts for drug purchases, and to pursue trade policies that enhance intellectual property rights of US pharmaceutical companies," said analysts at brokerage Credit Suisse, in a research note. "It is not clear how either action would lead to lower drug prices without accompanying legislation...experts agree that statutory changes are needed to enable insurers to enter into true value-based contracts with pharmaceutical companies."
The SPDR S&P Biotech index rose sharply, adding to Tuesday's gains.
Anthem said it would pull out of the Affordable Care Act's health-insurance marketplaces in Wisconsin and Indiana next year, the latest sign of strain in the exchanges as Senate Republicans push to quickly pass a health overhaul.
Missouri became the latest state to file a lawsuit against opioid-painkiller companies such as Purdue Pharma, Johnson & Johnson and Endo Pharmaceuticals, alleging they helped create an addiction crisis by misrepresenting the risks and benefits of their drugs.
Rob Curran, email@example.com
(END) Dow Jones Newswires
June 21, 2017 18:15 ET (22:15 GMT)