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Pfizer, Eli Lilly, Merck and Other Pharma Stocks Fall as Trump Targets Lower Drug Prices - Barron's

1. Pharmaceutical stocks dropped after Trump's price cut announcement. 2. LLY shares fell 2.25% in premarket trading. 3. Trump proposed a 'most-favored-nation' price policy for drugs. 4. U.S. drug prices may decrease 30% to 80%, impacting revenue. 5. Overall market rallied despite healthcare stock declines.

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FAQ

Why Bearish?

The proposed price reductions could significantly impact LLY's revenue stream, similar to past healthcare reforms that have depressed stock valuations in the sector.

How important is it?

The article addresses significant policy changes that could alter LLY's pricing power, making it highly relevant.

Why Short Term?

Immediate trading reactions suggest short-term declines for LLY, reminiscent of past scenarios involving drug pricing regulations.

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