Shares of pharmacy benefit managers (PBMs) continued their decline Tuesday following remarks from Pfizer CEO Albert Bourla, who stated that the President-elect is “very committed” to reforming the drug industry middlemen.
Bourla’s comments, coupled with previous remarks from the President-elect and ongoing criticism from Congress, suggest PBMs face continued political pressure.
UnitedHealth Group (NYSE:UNH) saw its shares drop as much as 2.6%, CVS Health Corp. (NYSE:CVS) fell up to 5.5%, and Cigna Group (NYSE:CI) experienced a slide of up to 2.8% after Bourla's statement.
These losses followed similar dips on Monday after the President-elect publicly criticized the PBM system, stating they are “horrible middleman that makes more money frankly than the drug companies.”
Bourla relayed that the President-elect has “very strong views” on PBMs and “wants transparency,” adding, “It seems to me that he is very committed to make this happen.”
Both Republican and Democratic lawmakers have criticized PBMs for their role in escalating drug prices.
However, while PBMs have faced criticism, a 2017 analysis from the University of Southern California indicated their profit margins are typically smaller than those of drug manufacturers.
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