A US Drug Pricing Rebellion Looms, Analyst Says

Wells Fargo analyst David Maris warned biopharma investors that the US drug market is on a long-term trajectory toward price controls, which he characterized as an under-appreciated risk for the sector, ahead of President Trump's speech on drug pricing.

Revolution Sign

US drug prices continue to grow, on average, by double digits every year, and pressure is mounting to rein in the spending. Wells Fargo analyst David Maris issued a stark warning to biopharma investors May 2 that the US drug market is headed toward more price controls, as concern over the cost of drugs continues to mount among the American public.

"We believe the US is on a longer-term arc toward price controls and lower margins, as there is an uprising that has been percolating for years against high drug prices," Maris said in a note to investors

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