(Washington)

President Trump made what may turn out to be a landmark move yesterday when he announced a proposal to reign in drug prices. The plan is a blueprint to drive down costs, and it transfers more power to health insurers to compete on pricing. Medicare is also involved, as the huge US health care service has a major influence on drug prices. Critics say the plan falls well short of what Trump promised during his campaign, when he said drug companies were “getting away with murder”.

FINSUM: We do not fully have the expertise to comment on the potential effectiveness of the plan, but it certainly seems a step in the right direction, and one in which drug company shareholders don’t need to be too worried.