Omnicom, WPP under pressure after Trump moves to regulate pharma ads

Shares of Omnicom (OMC) and WPP (WPP) are under pressure after President Trump signed a memorandum mandating pharma ads provide more information on risks. The move could potentially disrupt billions of dollars in ad spending, which in turn could affect major advertising agencies like Omnicom, Interpublic (IPG) and WPP. “The Secretary of Health and Human Services shall therefore take appropriate action to ensure transparency and accuracy in direct-to-consumer prescription drug advertising, including by increasing the amount of information regarding any risks associated with the use of any such prescription drug required to be provided in prescription drug advertisements, to the extent permitted by applicable law,” the memorandum reads. PRICE: In morning trading, shares of Omnicom and Interpublic have dropped almost 3% to $75.46 and $25.81, while WPP’s stock has slid a little over 1% and is now trading at $26.94.