WASHINGTON—President Trump said he is "certainly" concerned about Ebola during a White House press briefing, sending shares of pharmaceutical and biotech companies higher on speculation about increased federal spending on public health preparedness.
Shares of Gilead Sciences, known for antiviral drug development, and Merck, a major vaccine maker, rose in early trading following Trump's comments. The Pharmaceutical Research and Manufacturers of America has lobbied consistently for greater government investment in biodefense capabilities, positioning member companies for potential federal contracts.
Trump's statement signals a potential shift in federal public health spending, which has historically faced cuts before perceived crises emerge. Any new appropriations requests for the Department of Health and Human Services would likely face scrutiny from fiscal conservatives in Congress but could gain broad support if outbreak concerns intensify.
The broader market showed mixed performance, with the Dow Jones rising 0.3 percent while the Nasdaq fell 0.5 percent. The divergence suggests investors are moving capital toward sectors that could benefit from new government spending, including healthcare and medical supply chains.
Companies like Thermo Fisher Scientific, a major supplier of lab equipment and diagnostic tools, would also stand to gain from any supplemental appropriations bill targeting infectious disease surveillance and rapid response capabilities.
Biotech firms, medical device manufacturers and vaccine developers are expected to intensify lobbying efforts to secure portions of potential federal funding tied to the administration's stated health security priorities.
