Shares of health-care companies slipped as Covid-19 remained in focus.
The U.S. coronavirus death toll passed 111,000 while reported cases topped 1.9 million, according to data compiled by Johns Hopkins University. Cases world-wide exceeded 7 million, and deaths stood at more than 408,000. Experts say official totals likely understate the extent of the pandemic, in part because of different testing and reporting standards.
The onset of Covid-19 has granted the drug industry a significant business opportunity, but whether manufacturers should take full advantage is more complicated than investors might appreciate. The developers of successful drugs could theoretically charge whatever the market will bear, but charging the highest feasible price might not be the best long-term business decision if it puts future pricing power at risk. So far, drug pricing hasn't been a major focus of either the Trump or Biden presidential campaigns. Preserving that dynamic could be worth more than any short-term Covid-19 boost to the bottom line.
Gilead Sciences will likely set a commercial price for its antiviral treatment remdesivir in the weeks ahead, after donating its initial manufactured supply. A round of vaccine candidates is also in development from major drug companies such as Johnson & Johnson, Merck & Co. and Pfizer, as well as from promising biotech upstarts.
Write to Amy Pessetto at amy.pessetto@dowjones.com
