LONDON: A tweet by US President Donald Trump promising lower drug prices for consumers proved to be a bitter pill for pharmaceutical stocks on Tuesday.
In a posting on Twitter shortly before the markets opened in New York, Trump said he was "working on a new system where there will be competition in the drug industry".
"Pricing for the American people will come way down!" he wrote.
While Wall Street's broad S&P 500 market index was off just 0.3 percent in late morning trading, shares in leading drugmakers were down considerably.
Shares in Mylan NV, whose EpiPen allergy shot was at the centre last year of public outrage over drug prices, fell 2.0 percent to $43.18. Stock in Botox-maker Allergan shed 1.6 percent to $238.42.
Pfizer shares gave up 1.0 percent to $34.02 and Merck 0.7 percent to $66.03.
"Donald Trump has ensured he remains the number one driver of volatility within the markets, with the president's latest tweet dragging pharmaceutical firms lower today," said market analyst Joshua Mahony at online trading firm IG. "Trump's promise to control drugs prices highlights that the optimism felt in response to Hilary Clinton's election loss was clearlymisplaced, proving that the topic remains one rare bipartisan area of agreement," he added.
Shares in European pharmaceutical makers also suffered.
In London, Shire fell 2.3 percent to 49.03 pounds, AstraZeneca shed 1.0 percent to 21.15 pounds, and GSK 0.6 percent to 16.75 pounds.
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