Week In Review: How Trump's Policies Moved Stocks - July 14, 2019

Trump abandons drug rebate proposal, criticizes Facebook's Libra digital currency.

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:

1. DRUG REBATE RULE: The Trump administration has withdrawn its proposal to eliminate rebates from government drug plans, a White House spokesperson confirmed to Politico, Dan Diamond and Adam Cancryn reported earlier this week. Spokesperson Judd Deere said in a statement, "Based on careful analysis and thorough consideration, the President has decided to withdraw the rebate rule. The Trump administration is encouraged by continuing bipartisan conversations about legislation to reduce outrageous drug costs imposed on the American people, and President Trump will consider using any and all tools to ensure that prescription drug costs will continue to decline." Publicly traded pharmaceutical distributors include McKesson (MCK), Cardinal Health (CAH), Amerisource (ABC) and Patterson (PDCO). Owners of pharmacy benefit managers include CVS Health (CVS), UnitedHealth (UNH), Anthem (ANTM) and Cigna (CI).

Commenting on the news, Raymond James analyst Chris Meekins called the decision "a win" for PBMs and distributors and "a slight negative" for the pharmaceutical makers. Publicly traded large cap drugmakers include AstraZeneca (AZN), Bristol-Myers (BMY), Eli Lilly (LLY), GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), Merck (MRK), Novartis (NVS), Pfizer (PFE), Roche (RHHBY) and Sanofi (SNY).

2. EXECUTIVE ORDER ON KIDNEY HEALTH: On Wednesday, President Trump signed an executive order "aimed at improving kidney health and promoting increased treatment options for American patients." Under the executive order, Medicare will test adjusting payment incentives to encourage preventative kidney care and the use of home dialysis and kidney transplants. President Trump is also directing his Administration "to develop a process to get artificial kidneys to patients in order to encourage development of such technology." Shares of both Davita (DVA), Fresenius Medical Care (FMS), and CareDx (CDNA), which develops diagnostic solutions for transplant recipients, rose following the news. Also higher were providers of home health services, including LHC Group (LHCG) and Amedisys (AMED).

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