UnitedHealth, CVS Health extend decline as Pfizer CEO cites Trump’s PBM comments

Shares of UnitedHealth (NYSE:UNH) and CVS Health (NYSE:CVS) continued to trade lower on Tuesday after Pfizer (NYSE:PFE) CEO Albert Bourla reiterated remarks made by President-elect Donald Trump regarding Pharmacy Benefits Managers (PBM).

In the U.S., UnitedHealth (NYSE:UNH), CVS Health (NYSE:CVS) along with Cigna (CI), Humana (HUM) and Elevance Health (NYSE:ELV) operate leading PBMs. Acting as pharma middlemen, PBMs negotiate with drugmakers and pharmacies on behalf of insurers regarding which pharmaceuticals require coverage.

UnitedHealth (NYSE:UNH) and CVS Health (NYSE:CVS) shares sold off on Monday after Trump criticized the PBM industry over its role in high drug prices in the U.S. “We are going to knock out the middleman,” Trump said following a meeting with major pharma executives, including Bourla.

“He has very strong views from his first term for the PBMs, but it’s very clear he once savings even more importantly,” Bourla noted during a call with analysts following his company’s newly issued 2025 guidance. “It seems to me that he is very committed to make this happen,” Bourla added.