When the Trump administration introduced a ‘blueprint’ to lower drug prices in May, the pharmaceutical industry breathed a sigh of relief. Andy Acker and Ethan Lovell, Portfolio Managers of the Janus Henderson Global Life Sciences strategy, discuss.
Key takeaways:
- The drug pricing debate in the US continues and could intensify in the months leading up to the US midterm elections.
- The debate has weighed on biotechnology and pharmaceutical stocks, even as innovation within these sub-sectors continues.
- Longer term, the team believe that advanced therapies could give companies significant pricing power, as the healthcare system increasingly focuses on value.