Gilead Sciences (GILD) stock plummeted 5.02% in Tuesday's trading session, as pharmaceutical companies faced pressure following President Donald Trump's announcement regarding upcoming measures to address medicine costs and introduce pharmaceutical tariffs.
The biotech giant's shares tumbled alongside other major drugmakers after Trump signaled he would make an announcement next week on the cost of medicines. The President told reporters at the White House that the U.S. was being "ripped off on medicine costs" compared to the rest of the world. He also mentioned plans to announce pharmaceutical tariffs over the next two weeks.
The news sent shockwaves through the healthcare sector, with the S&P 500 healthcare index falling 1.5%. Analysts at Jefferies noted that while Trump's recent comments imply that pharma-specific tariff proposals are coming, they may not be as severe as initially feared. Nevertheless, the uncertainty surrounding potential policy changes has rattled investors in the pharmaceutical industry, leading to significant sell-offs across the board.
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