Axios : What to watch in Trump's drug pricing speech

What to watch in Trump's drug pricing speech
President Trump and HHS Secretary Alex Azar. Photo: Nicholas Kamm/AFP/Getty Images
President Trump is headed to the Department of Health and Human Services this afternoon for a speech on drug prices with HHS Secretary Alex Azar.
What we're watching: Expect a heavy emphasis on Medicare Part B — the part that pays for drugs administered in a doctor's office.

  • Flashback: One of the more ambitious proposals in Trump and Azar's drug-pricing blueprint calls for shifting some drugs from Medicare Part B, which pays fixed prices, into Medicare Part D, where private companies negotiate discounts.
Driving the news: Medicare pays almost twice as much as other industrialized countries for many of the most expensive prescription drugs, according to a new report HHS released this morning that's focused on Part B drugs.
Details: HHS looked at the prices for 27 drugs, comparing them to the prices in 16 similar countries, mostly in Europe. Together, those 27 products make up about 60% of all spending in Part B.
  • The U.S. had the highest price for 19 of those 27 drugs.
  • HHS only found 1 drug whose U.S. price was lower than its average international price. Among the other 26, the U.S. prices were as much as 7 times higher.
  • Medicare pays an average of 1.8 times more than those other countries for these drugs.
Go deeper:

>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • KN +15.5%, XLNX +11.5%, ECHO +9.3%, CVRR +8.8%, TSLA +8.5%, MLNX +7.9%, SNBR +7.9%, FFIV +5.2%, FTI +5.1%, LYG +4.2%, MSFT +3.9%, IRM +3.9%, F +3.7%, WHR +3.6%, ICLR +3.6%, PS +3.3%, CTXS +2.9%, UBS +2.9%, NOW +2.8%, AEM +2.5%, SAVE +1.9%, DLB +1.5%, ELY +1.2%, HPE +1.1%, MANH +1.1%, VALE +1%

Gapping down:

  • WPP -19.9%, AMD -18.3%, ALGN -18.2%, EFX -9.8%, BUD -9.2%, KRA -8.8%, CURO -6%, RJF -4.2%, CLB -3.2%, JAKK -3.1%, TRN -2.9%, FNF -2.9%, ADT -2.3%, AX -2%, SRPT -1.7%, GG -1.6%, TAL -1.5%, CX -1.3%, AHL -1.1%, ORLY -1%

FT : Freeport CEO says company is not for sale

Freeport CEO says company is not for sale

Freeport-McMoRan, one of the world’s biggest copper producers, is not up for sale, according to its chief executive.

“We have no plans to sell the company,” Richard Adkerson told analysts following the publication of third-quarter results on Wednesday. “We’re focused on our internal business.”

Big miners and Chinese companies are looking to increase their exposure to copper, which is expected to benefit from the growth of renewable energy and electric vehicles.

With Freeport close to concluding an important agreement in Indonesia, the company has been tipped as a possible takeover target. However, ructions caused by the US-China trade war may mean that big deals are off the agenda, at least in the near term.

“I personally do not believe that in today’s world’s uncertainties there are opportunities for big mergers and transactions in the industry. I certainly don’t consider it to be something that we would look at in the near term given our share price,” Mr Adkerson said.

Shares in Freeport have fallen 45 per cent this year and were trading close to a 12-month low on Wednesday at $10.94.

On the call, Mr Adkerson claimed the deal to sell a majority stake in its Indonesia subsidiary to a local company would create a better operating “environment” for Grasberg, it flagship copper and gold mine.

After years of wrangling, Freeport and its joint venture partner Rio Tinto reached a deal with Jakarta last month to cede control of PT Freeport Indonesia (PTFI) to Inalum, a state-owned company. This is part of wider government-led push to gain greater control of Indonesia’s natural resources.

To fund the deal, Inalum is looking to raise debt, something Mr Adkerson said would ensure the two sides will be working on the same page.

“They will want to see the operations run with stability because they’ll need cash flows to fund this significant debt they’re taking on,” he said.

“And so they’ll want to see the operations run smoothly, to generate cash flows, to service our debt and generate dividends. So I believe firmly that, that this will create a better overall environment for operations than what we’ve experienced in recent years,” he said.

>>> What to look at today - 25th of October 2018

 An equities rout that wiped out this year’s gains for U.S. stocks spread to Asia and looked set to engulf Europe on concerns that company profits and economic growth are peaking amid rising borrowing costs. Haven assets like gold and the yen climbed, while Treasuries held gains and the dollar nudged lower.
Stock gauges tumbled across Asia, pushing the MSCI Asia Pacific Index deeper into a bear market. Futures suggest the sell-off will snare Europe. Japan’s Topix index closed at the lowest in more than a year. The S&P 500 Index erased this year’s gains following mixed earnings reports from companies such as AT&T and Texas Instruments. The benchmark extended its October rout to almost 9 percent, making it the worst month since February 2009, while the Nasdaq Composite Index fell into a correction.
US After Hours  KN +18%, TSLA +11.5%, XLNX +11%, MLNX / FFIV +6%, F +4% are higher, while AMD -22%, ALGN -21%, EFX -11% are lower following earnings/guidance

Nikkei -3.72% Hang Seng -1.63% CSI +0.05% Shanghai -0.06% Shenzen -0.35%

Eur$ 1.1419 CNH 6.9483 CNY 6.9431 JPY 112.17 GBP 1.2915 CHF 0.9962 TRY 5.7209 RUB 65.6268 WTI$ 66.48 -0.51%

S&P +0.39% EuroStoxx -0.48% FTSE -0.68% Dax -0.67% SMI -1.16%

Macro :
- Citi Said to Move Some Private Bankers to Spain as Brexit Looms
- Bitcoin’s Relative Quiet May Mean That It’s Finding a Bottom
- European Banks Await Thursday’s ECB Meeting at Two-Year Low

Keep an eye on :
- ABBN SW : ABB Third Quarter Operating Ebita Misses Estimates
- ABI BB : AB InBev Third Quarter Adjusted Ebitda Misses Estimates
- ABI BB : AB InBev 3Q Below Expectations, Dividend Cut Sensible: Investec
- ACAD SS : Academedia First Quarter Operating Profit Misses Lowest Estimate
- AAD GY : Amadeus Fire Nine Month Ebita EU27.5 Mln
- ALFA SS : Alfa Laval Third Quarter Adjusted Ebita 2.4% Above Estimates
- AENA SM : Aena, First State to Bid Jointly for Sofia Airport: Expansion
- ATE FP : Alten Raises FY Organic Sales Growth Forecast
- AVV LN : Aveva ‘Continued to Perform Well’ in 1H, Integration On Track
- BESI NA : BE Semiconductor Projects 4Q Revenue Drop of 20-25% From 3Q (1)
- BKT SM : Bankinter Nine Month Net Income EU404 Mln Vs. EU376 Mln Y/Y
- EN FP : Bouygues Telecom in Talks to Buy Keyyo
- BUCN SW : Bucher Nine Month Sales CHF2.25 Bln
- CAP FP : Capgemini Third Quarter Revenue EU3.23 Bln
- CAP FP : Capgemini 3Q Should Reassure Concerns on Growth: Morgan Stanley
- CAPD LN : Capital Drilling Gets 5-Year Drilling Contract at Sukari Mine
- CO FP : Casino Lodges Complaint for Price Manipulation, Insider Trading
- 1COV GY : Covestro Third Quarter Sales 3.6% Above Estimates
- CNE LN : Cairn Submits SNE Development Plan, Says Woodside to Be Operator
- CAU LN : Centaur Media Sees Adj. Operating Profit Below Expectations
- CEC GY : Ceconomy Sales Fall as Fourth Quarter Business Hit by Heatwave
- COFA FP : Coface Nine Month Net Income EU98 Mln
- COR PL : Corticeira Buys Property to Develop Intensive Oak Plantation
- DAI GY : Daimler Third Quarter Revenue Beats; CEO “Confident” for 4Q
- DEB LN : Debenhams to Report Biggest Loss in 240-Year History: Sky
- DEB LN : Debenhams Plans to Close Up to 50 Stores Amid Write-Down
- GIL GY : DMG Mori AG Boosts Full Year Order Intake Forecast
- DNB NO : DNB Third Quarter Net Interest Income Meets Estimates
- EDF FP : Majority of French Opposes Nuclear Power, Odoxa Poll Shows
- ELIS FP : Elis Raises FY Ebitda Margin Target
- EQNR NO : Equinor CEO Says No Specific Triggers for Share Buybacks
- ERA FP : Eramet’s Kouaoua Mine Restarts Operations: AFP
- EVS BB : EVS Broadcast Buys Back Up to EU10m of Stock as Evertz Has 3.12%
- FII FP : LISI Third Quarter Sales EU386.3 Mln
- FIA1S FH : Finnair Third Quarter Ebit Beats Highest Estimate
- FLOW NA : Flow Traders Gets Approval for London Office Ahead of Brexit
- GLPG NA : Galapagos Boosts Full Year Operating Cash Flow Forecast
- GNFT FP : Genfit Mulls U.S. Listing as Late-Stage NASH Results Near
- HLDX SS : Haldex Third Quarter Operating Profit Misses Estimates
- HSTG LN : Hastings Nine Month Gross Written Premiums GBP738.5 Mln
- HOFI SS : Hoist Finance Third Quarter Pretax Profit SEK243 Mln
- HYQ GY : Hypoport Third Quarter Revenue EU70 Mln
- HUH1V FH : Huhtamaki Third Quarter Net Sales 1.4% Below Estimates
- IAG LN : IAG Concludes Buy-Back Program: Filing
- IDIA SW : Idorsia: Axovan Holders Milestone Payments Claim Has No Merit
- IPN FP : Ipsen Revises Full Year Core Op. Margin Forecast
- ITP FP : Interparfums Revises Full Year Sales Forecast
- KGF LN : Kingfisher Short-Interest Jump Indicates Fragility, Citi Says
- KGX GY : Kion Third Quarter Adjusted Ebit Meets Estimates
- KINVB SS : Kinnevik Third Quarter Net Asset Value Per Share SEK286
- KRN GY : Krones 9-Month Pretax Down 17% to EU139.4m
- KORI FP : Korian 3Q Revenue EU840m; Company Confirms FY Outlook
- KCR FH : Konecranes Third Quarter Adjusted Ebitda Beats Highest Estimate
- LEG GY : Leg Immobilien Set to Replace Linde AG S&P in S&P Europe 350
- LIN GY : Linde Change of Mnemonics
- LIAB SS : Lindab Third Quarter Net Sales 1.3% Above Estimates
- LONN SW : Lonza 3Q Update Confident, Confirms Prior Trends, Jefferies Says
- LLOY LN : Lloyds Third Quarter Statutory Pretax Profit Beats Estimates
- MAIL LI : Mail.ru Group Third Quarter Ebitda Misses Lowest Estimate
- MAP SM : Mapfre to Offer New Sustainable Funds: Confidencial
- B4B GY : Metro 4Q Sales Drop 2.3% Led by Decline in Real Unit
- MONC IM : Moncler 3Q Wholesale Sales At Constant FX Beat Est., Sees No October Slowdown in Chinese Demand: RBC
- MTX GY : MTU Aero Boosts Full Year Revenue Forecast
- NOKIA FH : *NOKIA 3Q NET SALES EU5.46 BLN; EST. EU5.43 BLN
- NOKIA FH : Nokia Plans Job Cuts to Achieve EU700m Operating Cost Reduction
- NPRO NO : Norwegian Property Third Quarter Revenue Beats Highest Estimate
- NAS NO : Norwegian Air Third Quarter Revenue Meets Estimates
- ORA FP : Orange 3Q Profit Beats Estimates; Outlook for Year Confirmed
- ORK NO : Orkla Third Quarter Adjusted Ebit 3.1% Above Estimates
- ORX SS : Orexo Third Quarter Net Revenue 2.7% Above Estimates
- PWTN SW : Panalpina Nine Month Ebit CHF83.2 Mln
- UG FP : PSA 3Q Rev. Misses Estimate; Mid-Term Plan Confirmed
- POM FP : Plastic Omnium Third Quarter Sales +29.6%
- POM FP : Plastic Omnium Revises FY Outlook, Op. Profit Comparable to 2017
- UG FP : PSA CFO Says WLTP Could Push up European Prices in Longer Term
- PUM GY : Puma Boosts Full Year Ebit Forecast
- RADH SS : Radisson Hospitality Third Quarter Ebitda Beats Highest Estimate
- RWE GY : RWE Sees 20 to 25 Years Needed for Orderly Lignite Exit: Dpa-AFX
- SAL IM : Salini Impregilo’s Lane Wins 2 U.S. Contracts Worth Total $400m
- SEBA SS : SEB Third Quarter Net Income Beats Estimates
- SIKA SW : Sika Nine Month Ebit CHF669.0 Mln
- WAF GY : Siltronic Third Quarter Sales Beat Highest Estimate
- WAF GY : Siltronic 3Q Above Expectation, Profitability Very Good:Oddo BHF
- SU FP : Schneider Electric 3Q Rev. Up 8% at EU6.38B; Upgrades Targets
- SU FP : Schneider CFO Sees Tariff Direct Impact at Up to EU50M in 2019
- SUN SW : Sulzer Boosts Full Year Net Orders Forecast
- SZU GY : Suedzucker Rallies as Sugar Prices Bounce on Brazil Output
- TESB BB : Tessenderlo 3Q Adjusted Ebitda EU35.6 Mln Vs. EU40.6 Mln Y/Y
- TOBII SS : Tobii Third Quarter Operating Loss SEK60 Mln
- UBSG SW : UBS Third Quarter Net Income Beats Highest Estimate
- VACN SW : VAT Third Quarter Net Sales CHF162.7 Mln
- VLA FP : Valneva Gets Positive Feedback From EMA on Vaccine VLA15
- VTX FP : Voluntis: Roche Ends Pact to Extend ZEMY Breast Cancer Solution
- VOS GY : Vossloh Revises Full Year Ebit Margin Forecast
- VOW3 GY : VW Brand Expects SUV to Account for 50% of Deliveries by 2025
- WCH GY : Wacker Chemie Third Quarter Ebitda Misses Lowest Estimate
- WALLB SS : Wallenstam Third Quarter Profit After Tax SEK459 Mln
- WPP LN : WPP to Announce Plan to Sell Majority Stake in Kantar: Sky