Posted on 09/22/2015 4:07:46 AM PDT by expat_panama
Biotech stocks tumbled Monday after presidential candidate Hillary Clinton said she would propose a plan to address high drug prices on Tuesday.
"Price gouging like this in the specialty drug market is outrageous," Clinton wrote on her Twitter account Monday morning. "Tomorrow I'll lay out a plan to take it on." Clinton linked to a New York Times article about Daraprim, a drug whose price was hiked more than 50-fold after it was acquired by privately held Turing Pharmaceuticals.
[snip]
Biotechs Lead Drug Sell-Off
The iShares Nasdaq Biotech ETF (NASDAQ:IBB) fell 4.5% Monday. Biogen stock skidded 5.6%. Gilead Sciences (NASDAQ:GILD), which started the day up slightly after reporting good drug trial news, lost 2.5%.
Regeneron (NASDAQ:REGN) fell 3.8% and Amgen (NASDAQ:AMGN) 2.3%. Regeneron with partner Sanofi (NYSE:SNY) and Amgen recently won separate approvals for a new class of cholesterol fighters.
[snip]
Clinton Impact Seen Limited
Ultimately though, the political furor over Sovaldi didn't lead to actual legislation. It wasn't the government that drove down Sovaldi's price but the competition. After AbbVie (NYSE:ABBV) unveiled a rival regimen in December, the companies got into a rebate war.
So can Clinton really make a difference? Terry Haines, Evercore ISI's D.C. policy analyst and a former Washington lobbyist, finds it unlikely.
"Even if a Democratic president is assumed, a 2017 Congress almost certainly would not approve
[snip]
24 low amid broader macroeconomic and valuation concerns. Analyst Yee wrote that this could continue in the current environment.
"We warn investors to prepare for this drug-pricing volatility and noise as we go into 2016 and we have said that drug-pricing noise could turn up in 2016 due to the election year," he wrote.
(Excerpt) Read more at news.investors.com ...
--she'll probably silence her critics by blaming the crash on the Fed's low interest rates.
Best distraction they've come up w/ so far...
Great day for staying in bed --with all the money in the mattress. After yesterday's 'up-in-lower-trade' (NASDAQ +0.0%) today's futures (a couple hrs before the bell) for stock indexes -1.47% and metals -1.64%. Only one major econ report: FHFA Housing Price Index. Maybe while I'm hiding I'll browse this stuff:
Is It Time for Investors To Buy Europe's PIIGS? - John Kimelman, Barron's
Tax Selling Could Extend the Correction - Anora Mahmudova, MarketWatch
Are Middle Class Incomes Really Falling? - Gary Burtless, RealClearMarkets
What If the Richest In Every Country Gave It Away? - Wei Lu, Bloomberg
It's Time for Obama to Call China's Bluff - Gordon Chang, The Daily Beast
Forget Critics, China's Currency Is Not Undervalued - Charles Wolf, TWS
Sanders, Trump, & The Promise of Populism - William Greider, The Nation
“Buy when everyone else is selling and hold until everyone else is buying. That’s not just a catchy slogan. It’s the very essence of successful investing.” J. Paul Getty
I’m sure the hag got her shorts on (sorry about the potential image) before the tweet.
We are running shortages now on lots of drugs we never had a problem with, for the same reasons as above.
I was wondering why my small pharma portfolio took a hit. Still better than the S&P over the last few weeks though.
I bet she sold short, just like the last time she attacked the biotech industry.
Personally, I (former Mensa member) would probably require a lot more time to determine the root cause of the problem, the forces at work, the laws applicable, and an acceptable solution, if one is actually needed.
S&P 500
1,934.00 -29.00 -1.50%
DJIA
16,228.00 -228.00 -1.40%
NASDAQ 100
4,264.00 -77.25 -1.81%
yck1!
Nailed.
One of the effects of 0bama/Robertscare kicking in. Pharmaceutical research, testing and the resulting drugs supply reduction is an early loser.
“...a 2017 Congress almost certainly would not approve”
What quaint, old fashioned thinking. What naïveté by IBD. Obama will bequeath his pen and his phone to her and the smartest woman in the world will make it happen with her first EO. Who cares if new drug flow stops? It’s the right thing to do.
I wonder how short the Clinton Cabal was/is on the drug sector prior to yesterday.
He may have said that before late '29 when folks bought after prices tanked ten percent --only to watch their share fall another 80%. I like "the trend is your friend" better.
The Coming Collapse of China
Paperback July 31, 2001
by Gordon G. Chang (Author) _________________________________________
But you just wait! One of these days he will be right.
I hate when I screw up my post formatting....
Obama has taught us that you don’t need Congress. Through the bureaucratic state you can inflict the death of a thousand slices. Certainly sufficient to make them cry uncle.
True statement unless of course you get your medications for free, then it doesn't matter.
Buying more RDS/B today.
What has not plunged on whatever?
The markets are a first class mess.
I think the sheeple are catching on to fraud street’s shell game and many have quit trading. What would be the point?
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