The Trump budget plan to slash more than 18% from the budget for the National Institutes of Health sent pharmaceutical stocks down today on Wall Street as investors reacted to the proposal.
The budget proposal, released today, would cut the NIH budget by $5.8 billion, to $25.9 billion – an 18.3% cut. The proposal would also introduce “a major reorganization of NIH’s Institutes and Centers to help focus resources on the highest priority research and training activities.”
The proposal would eliminate the Fogarty International Center, a global health-focused organization, and consolidate the Agency for Healthcare Research & Quality. It also includes “other consolidations and structural changes across NIH organizations and activities” and “reduces administrative costs and rebalance[s] Federal contributions to research funding.”
Investors reacted by sending pharma and other healthcare related stocks down today:
|COMPANY||SHARE PRICE||% CHANGE|
|Boston Scientific (NYSE:BSX)||$24.27||-1.6%|
|C.R. Bard (NYSE:BCR)||$248.69||-0.8%|
|Becton Dickinson & Co. (NYSE:BDX)||$181.00||-1.9%|
|Gilead Sciences (NSDQ:GILD)||$68.39||-0.1%|
|Johnson & Johnson (NYSE:JNJ)||$128.16||-0.6%|
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