ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Artificial Intelligence
      • Beyond Basic Beta
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Direct Indexing
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Investing
      • ETF Education
      • ETF Strategist
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Institutional Income Strategies
      • Leveraged & Inverse
      • Managed Futures
      • Market Insights
      • Modern Alpha
      • Multifactor
      • Responsible Investing
      • Retirement Income
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Commodities
        • Gold/Silver/Critical Minerals
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Beyond Basic Beta Channel
  2. Pharma ETFs Surge After Senate Rejects House Drug Pricing Plan
Beyond Basic Beta Channel
Share

Pharma ETFs Surge After Senate Rejects House Drug Pricing Plan

Aaron NeuwirthSep 26, 2019
2019-09-26

Pharmaceuticals stocks and ETFs, including the VanEck Vectors Pharmaceutical ETF (PPH A-), rallied Friday after Senate Majority Leader Mitch McConnell (R-KY) said a House effort to lower drug prices led by Speaker Nancy Pelosi (D-CA) will not be considered by the Senate.

“Senate committees have passed their own versions but the GOP is not united on the issue. Deep-pocketed drug makers are spending millions on lobbyists to ensure that there will be no substantial constraints on prices,” according to Seeking Alpha.

Changing political winds and the seasonal period for drugmakers to hike their prices could trigger short-term volatility in pharmaceutical sector-related ETFs.

However, requests to drug manufacturers may fall on deaf ears, especially with many of them struggling to generate sales growth and underperforming the broader equity market for most of the past couple of years. Drug producers are unlikely to forego one of the easier ways to quickly turn a profit by raising their top and bottom lines through price hikes.

Pelosi is pushing a bill that would have Medicare negotiate lower prices for 25 popular prescription drugs.

This article originally appeared on ETFTrends.com

McConnell’s Not A Fan

McConnell called the plan a “socialist” effort.

“Socialist price controls will do a lot of left-wing damage to the healthcare system. And of course we’re not going to be calling up a bill like that,” said the Senate majority leader, according to Politico.

PPH, which has nearly $150 million in assets under management, tracks the MVIS US Listed Pharmaceutical 25 Index. That index “is intended to track the overall performance of companies involved in pharmaceuticals, including pharmaceutical research and development as well a production, marketing and sales of pharmaceuticals,” according to VanEck.

Related: 8 ETFs to Capture Opportunities in Healthcare Sector

Top holdings in PPH include AstraZeneca (AZN), Merck (MRK) and GlaxoSmithKline (GSK).

“The Senate package contains some elements of Pelosi’s plan to bring down drug prices by capping expenses for seniors with Medicare prescription drug coverage and restraining drug increases,” reports Politico. “But is does not contain negotiating provisions Pelosi is seeking. Many Republicans don’t like that bill to begin with, but they dislike Pelosi’s plan even more.”


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X