Pharma learns a hard political lesson

KEY TAKEAWAY: Shares of biotechnology and pharmaceutical companies retreated after President-elect Donald Trump vowed in a magazine article to crack down on drug prices. Drug stocks fell after Mr. Trump was quoted in a Time Person of the Year article as saying: “I’m going to bring down drug prices.”  Better put that champagne on ice. Continue reading

Why drug prices are so high

083115_diabetescost_THUMB_LARGEWall Street investors, from 2012 to the middle of 2015, have poured more than $50 billion in new capital into the pharma industry, according to Leerink, an investment bank that does equity research.  That influx of cash shifted the character of the industry, says John Rother, head of the nonpartisan advocacy group National Coalition on Health Care. Instead of focusing on time-consuming R&D, drug companies began worrying more about delivering short-term gains to shareholders, he explains. Continue reading