Drug stocks dive as Trump says he’s considering suing drugmakers over opioid crisis

President Donald Trump Delivers remarks on "combatting the opioid crisis" in a speech at Manchester Community College in Manchester, brand-new Hampshire, U.S., March 19, 2018.

Jonathan Ernst | Reuters

President Donald Trump Delivers remarks on “combatting the opioid crisis” in a speech at Manchester Community College in Manchester, brand-new Hampshire, U.S., March 19, 2018.

President Donald Trump said he’s considering suing drugmakers for their role in fueling the opioid epidemic, sending pharma stocks tumbling Monday.

several cities, counties in addition to states have already sued opioid manufacturers. Last month, Attorney General Jeff Sessions said he was creating a task force to examine companies’ role inside epidemic in addition to was ordering the item “to examine existing state in addition to local government lawsuits against opioid manufacturers to determine if we can be of assistance.”

“Our Department of Justice can be looking very seriously at bringing major litigation against some of these drug companies,” Trump said Monday. “We’ll bring the item at a federal level. Some states are already bringing the item, yet we’re thinking about bringing the item at a very high federal level in addition to we’ll do a job.”

Trump was speaking in brand-new Hampshire, where he was introducing his administration’s brand-new plan to tackle the crisis. Shares of three opioid producers were hit especially hard. Endo International in addition to Depomed shares both fell about 4 percent, while Mallinckrodt, dropped 5.5 percent.

Morgan Stanley identified the three companies as facing risk coming from the lawsuits because their branded opioid sales are, in addition to were, significantly large relative to their portfolio in addition to given their current high financial leverage.

In a note to clients, the analysts said which pharma companies who make branded drugs may be more exposed to lawsuits than those who make generics because the former are usually promoted, whereas the latter aren’t.

“Companies must also be accountable,” Trump said. “The Department of Justice recently created a task force to coordinate investigations in addition to lawsuits against manufacturers in addition to different bad actors which harm our citizens.”

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