Analysts reject President Donald Trump's recent executive orders aimed at lowering drug prices, as his meeting with executives of major drug companies should no longer take place on Tuesday as planned.
"Trump's executive drug pricing orders are largely campaign feed, as each contains restrictions or reservations and is subject to further action," said Capital Alpha Partners analyst Kim Monk in a note.
Other analysts offered similar attitudes.
"The EOs are likely to aim to strengthen the president's support among health policy voters and do not have the force to change prices in the United States," wrote Height Hamm analyst Hunter Hammond Capital markets. He also described the orders as "largely toothless".
The President's step with the orders “shows once again that Trump is only bark, no bite on drug prices. A louder bark doesn't make the bite heavier, ”said Chris James analyst Chris Meekins in a note.
When Friday's orders were unveiled on Friday, the president said pharmaceutical industry executives "will be in the White House on Tuesday and have some ideas on how to significantly lower drug prices."
"If these talks are successful, we may not have to implement the fourth executive regulation, which is a very difficult one for them," added Trump, who is currently lagging behind democratic challenger Joe Biden in a RealClearPolitics national poll with 9 points the November presidential election.
However, the meeting should no longer take place on Tuesday, and the main trading group of the pharmaceutical industry has criticized Trump.
"An executive order to impose price controls by health systems abroad is a ruthless and dangerous distraction from beating # COVID19," said a tweet from Pharmaceutical Research and Manufacturers of America, also known as PhRMA, on Monday. "Our focus must be on fighting # COVID19, not on measures that jeopardize innovation and threaten hope for progress towards a vaccine."
From the archives:Drug makers' lobbying expenditures hit a 10-year high as Washington targets rising prices
And read:Pelosi's drug pricing bill goes past House, but pharmaceutical stocks have risen as it is unlikely to become law
Pharmaceutical stocks as tracked by the Invesco Dynamic Pharmaceuticals ETF
are 1.6% higher this week after falling 1.6% on Friday. They gained 2% this year, while the broad S&P 500 index
only increased by 0.2% in 2020.