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Benzinga
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3 Stocks That Will Profit From Trump's Drug Price Cut

1. Trump's Executive Order mandates US drug price cuts for pharma companies. 2. Pharma prices may drop by 59% to 90% within 30 days. 3. Larger pharma companies like Amgen could face significant earnings pressure. 4. Smaller biotech firms may escape immediate impacts due to regulations. 5. Potential benefits may arise for drug manufacturers over pharmacy benefit managers.

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FAQ

Why Bearish?

The EO may significantly reduce revenues for large-cap pharmaceutical companies, reminiscent of past price controls that affected profitability.

How important is it?

The article discusses direct government action affecting a significant sector in the S&P 500, with high implications for stock valuations.

Why Long Term?

Implementing price cuts will likely take 6-12 months, affecting financials down the line.

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