Sales spread from Wall Street to Europe after the Democratic candidate's new comments on the prices of medicines. The case of the EpiPen (Mylan) “is just the latest example of a company taking advantage of its consumers”
Stefano Neri – Thursday 25 August 2016 – Finance Report.it
Widespread sales in the pharmaceutical sector after Hillary Clinton yesterday dusted off one of her strong points: the prices of drugs that are too high. This time, society is in the sights of the Democratic candidate for the White House Milan, manufacturer of a lifesaver that is injected to thwart severe allergic reactions, such as anaphylactic shock following an insect bite.
The drug, called EpiPen, has actually increased in some patients to 400% over the past 9 years (depending on pension plans) and the case had already ended up at the center of controversy by some senators. However, the EpiPen is available free of charge in 65,000 US schools.
However, it is not this case that worries investors so much (with the Mylan stock collapsing by 5.6% anyway) as the attitude not inclined towards the market shown by Clinton, as already last September when with his accusations he caused a prolonged collapse of the shares of the biotechnology sector. On Wall Street yesterday, the pharmaceutical sector lost 2%, while NASDAQ Biotechnology dropped 3.4%.
Sales dragged on today on the European sector. In the middle of the session, Hikma gave London 4% and Shire 4.2%, while AstraZeneca -1.70% and GlaxoSmithKline -0.6% contained the losses. Novartis in Zurich loses -1.7%. In Milan Recordati leaves 1.8% on the field.
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According to Jasper Lawler, market analyst at CMC Markets, Hillary Clinton's attack “should continue to weigh on the healthcare sector. Biotech in particular, including the likes of Amgen, Biogen and Celgene, could remain under pressure. The statements confirm the industry's fear that a Clinton presidency would lead to a serious crackdown on the pharmaceutical industry's ability to set prices.
Clinton in particular said that the EpipEn case “is only the latest example of a company that takes advantage of its consumers” and that “it is wrong when a drug company puts profits ahead of patients by raising prices without justifying the value behind it”. Finally, the Democratic candidate called on Mylan to voluntarily cut prices.
Related news: Mylan Announces EpiPan Price Cuts
