In September Biotech stocks got hammered. Most market participants blamed the massive decline on Democratic Presidential candidate Hillary Clinton. On September 21, Clinton tweeted "Price gouging like this in the specialty drug market is outrageous. Tomorrow I'll lay out a plan to take it on." Clinton was referring to a drug called Daraprim, a 65-year-old drug, which recently saw its price increase from $13.50 per pill to $750.
While there are arguments for and against why Daraprim and other drugs increase in price, an industry-wide reform on how prices are set would likely hurt nearly every company in the biotech space. And that was what Clinton essentially proposed last month. With uncertainty surrounding the industry, the NASDAQ Biotechnology Index (NBI) fell by more than 15% just in September compared to a decline of just 4.4% for the S&P 500 during the month. Continue reading "6 Ways To Play The Biotech Industry Moving Forward"
