Health care stocks whipsawed on Friday as President Donald Trump unveiled his long-awaited plan to lower prescription drug prices, dubbed “American Patients First.”

The sector briefly turned negative before trading 0.8 percent higher. Shares of Express Scripts and CVS both hit session lows before rising 3.1 percent and 2 percent, respectively. Dow Jones industrial average components Merck and UnitedHealth also dipped before trading higher upon the announcement.

Trump has repeatedly chastised drug companies. He’s even accused them of “getting away with murder,” spooking investors and causing pharmaceutical and biotech stocks to plunge.

The administration will try to increase competition in order to cut drug prices, something Food and Drug Administration Commissioner Scott Gottlieb has promoted. He has already accelerated the agency’s approvals of generics and biosimilars, or copycat versions of complex biologics.

Trump’s proposal will require Medicare Part D plans to share a portion of drug manufacturer discounts, known as rebates, with patients. This could be a relief to pharmacy benefit managers, as some reports suggested there would be a push to pass through all of these rebates.

Shares of CVS Health and Express Scripts slid last week after Gottlieb suggested the federal government re-examine whether rebates should be re-classified under anti-kickback laws.

Source: Investment Cnbc
Health care stocks whipsaw as Trump unveils plan to lower prescription drug prices