Pharma Stocks Remain Undervalued Despite Clinton Loss

Pharmaceutical stocks rallied the day of Trump's victory. But they have since slumped back as the future for the sector remains unclear

Karen Kwok 29 November, 2016 | 11:47AM

UK pharmaceutical stocks remain undervalued despite Democratic nominee Hilary Clinton losing the US election earlier this month.

Pharma stocks have lost value since the beginning of the year as sentiment towards the sector turned sour as then-favourite Presidential candidate Clinton promised to fight drug price hikes in her election campaign. 

While the threat of Clinton’s plan to have the government control drug prices has been eliminated following Donald Trump’s victory, pharma stocks are still trading lower than their fair estimate valued, according to Morningstar equity analysts.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
AstraZeneca PLC7,216.00 GBP0.00
GlaxoSmithKline PLC1,514.60 GBP0.00
Hikma Pharmaceuticals PLC2,035.00 GBP0.00
Polar Capital Healthcare Opports R Inc42.21 USD0.95

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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