Biotech: Forget 'Trumpcare', M&A will be biggest driver

Large acquisitions due

When it appeared likely that Hillary Clinton would be the 45th US President, prices of healthcare stocks fell, driven by fears her policies would have a negative impact on the sector.

But since Donald Trump became President, investors have been unsettled by the vagueness of the Republican plan for healthcare. The current proposed American Health Care Act, aka 'Trumpcare', has been badly received by a handful of Republicans, Democrats and the Congressional Budget Office. It looks increasingly likely this administration will prove too weak to make any major legislative changes, despite having a Republican 'clean sweep'. While there might not be any specific government policies which will hold back drug pricing, there is a high level of scrutiny on the cost of medi...