• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Trump 2.0 to be modest positive for BioPharma, BMO says, but watch FDA

by November 6, 2024
written by November 6, 2024

Investing.com — Donald Trump’s return to the White House is expected to be a “modest positive” for the biopharma sector, according to BMO Capital Markets analysts.

However, one concern in this context is related to the potential appointment of Robert F. Kennedy, Jr. to a significant healthcare role due to his previous anti-vaccine statements.

“We believe this to be the biggest X factor, as this twist has been a relatively new update to a Trump administration,” BMO analysts led by Evan David Seigerman said in a note. “However, we need to see who actually runs key health administrations.”

According to BMO, a Trump victory, which has been called by the Associated Press on Wednesday, is likely to result in a net positive outcome for the BioPharma sector.

Analysts believethat the Inflation Reduction Act (IRA) will not be expanded and that Federal Trade Commission (FTC) interventions will decrease. Furthermore, corporate taxes are expected to remain low or increase only marginally, and there is a possibility, though not a certainty, for some Pharmacy Benefit Manager (PBM) reform.

“If Trump opted for a more populist agenda, we could see continued pressure on drug pricing, or at a minimum keeping the status quo with the current IRA negotiations,” analysts continued.

“We’re shying away from stock-specific beneficiaries in this note, as the entire sector is likely to benefit with this election outcome.”

The report also highlights the potential benefits for larger-cap BioPharma companies and small to mid-cap firms in the event of decreased FTC oversight. With less political scrutiny anticipated under Trump’s leadership, the market may see an increase in mergers and acquisitions activity.

BMO’s team suggests that Trump’s focus on issues like immigration and tariffs is more likely than a push to regulate M&A transactions within the United States.

Looking ahead, the firm discusses the implications of the continuation or expansion of the 2017 Tax Cut and Jobs Act, which is set to expire in 2025.

Specifically, it suggests that while significant tax rate increases for corporations or individuals are unlikely, extending the tax cuts may require spending reductions in other areas. Trump’s stance on tariffs could also lead to increased costs across various sectors.

Lastly, analysts also points out other considerations, such as the BioSecure Act, which might see progress due to Trump’s previous remarks on China, and the unlikelihood of any action on march-in rights for pharmaceutical patents.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
US stock futures, dollar and bitcoin surge as Trump wins race to White House
next post
Explainer-How Trump’s second administration affects business: Musk, tariffs and more

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • WHO chief calls for end to hospital attacks in Gaza after strike
    • Asia stocks rise in holiday-thinned trade on tech boost

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy