Pharmaceutical companies will now be required to disclose price of drugs in TV ads

From Joe Williams:

Pharmaceutical firms will now be required to disclose the list price of treatments if the cost is higher than $35 per monthly prescription, according to a new rule finalized on Wednesday by the Trump administration.

“Requiring the inclusion of drugs’ list prices in TV ads is the single most significant step any administration has taken toward a simple commitment: American patients deserve to know the prices of the healthcare they receive,” Health and Human Services Secretary Alex Azar said in a statement.

The U.S. is one of the only developed nations to allow pharmaceutical firms to advertise treatments on television. Starting this summer, the price is expected to be included in the portion of the commercial where companies traditionally list the potential side effects of drugs.

The SPDR S&P Pharmaceuticals ETF (XPH) was trading at $40.44 per share on Wednesday afternoon, up $0.84 (+2.12%). Year-to-date, XPH has declined -6.99%, versus a 8.64% rise in the benchmark S&P 500 index during the same period.

XPH currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #18 of 33 ETFs in the Health & Biotech ETFs category.

This article is brought to you courtesy of Fox Business.