Morning Briefing
Summaries of health policy coverage from major news organizations
Biotech Industry Under Scrutiny By Investors
Bloomberg: Clinton's 'Price Gouging' Tweet Sends Drugmaker Hedges Surging
Biotechnology is being singled out by options investors as the sick sibling of the health-care family. Losses for U.S. biotech stocks have accelerated in the three days since Democratic presidential hopeful Hillary Clinton suggested there may be “price gouging” in the market for prescription pills. The high-flying industry, which has surged more than 450 percent during the six-year bull market, is now finding less favor among investors than its more staid older cousins that include Aetna Inc. and HCA Holdings Inc. (Ciolli and Jackson, 9/23)
Bloomberg: Here's What Wall Street Thinks Of Hillary Clinton's Plan To Crack Down On Pharmaceutical Companies
In July 2014, the world's most powerful woman sounded the alarm on biotech valuations. In testimony before Congress, Federal Reserve Chair Janet Yellen warned that there were some signs of froth in this segment. Her comments sparked a short-lived selloff in the sector. But the woman who has her sights set on claiming that title in 2016 -- Democratic front-runner Hillary Clinton -- who has sparked her own form of pressure on the high-flying group in recent days. (Kawa, 9/23)
Other market developments in the headlines -
Reuters: Steep Discounts Help Biotech Drug Copies Gain Ground In Europe
Cut-price versions of expensive biotech drugs are gaining ground in Europe, following surprisingly steep price discounts offered on the first copy of a complex antibody medicine for rheumatoid arthritis and Crohn's disease. The potential for so-called "biosimilars" to take business from pricey original brands is grabbing the attention of both healthcare providers, who see big budget savings, and investors, worried about the impact on drug company earnings. (Hirschler, 9/23)
Reuters: Nestle Pushes Father Into Medicine With Planned Alzheimer's Test
Food group Nestle has taken a further step into the medicine business by signing a research collaboration agreement with a Swiss biotech company to develop an Alzheimer's disease diagnostic test. Nestle's second medical deal in a week underscores the commitment by the world's largest packaged food company to the faster-growing, more profitable medical field as sales of processed foods slow in many markets. (9/23)
