Zacks US pharma industry outlook: drug pricing and biosimilars focus

3 March 2017

Zacks Equity Research has issued a statement discussing the pharma industry, noting that drug pricing issues will remain a headwind.

Drug pricing is an issue that has been weighing on pharma and biotech stocks for more than a year now. The sector, which previously had a stellar run, started its downward trend in September 2015 when a single tweet by Democratic Presidential candidate Hillary Clinton sent pharma and biotech stocks tumbling. Clinton’s “price gouging tweet" was in response to a huge price hike (about 5,000%) taken by Turing Pharmaceuticals for a drug that was approved by the Food and Drug Administration way back in 1953.

Since then, focus on the drug pricing issue has gone up and companies like Valeant Pharmaceutical International (TSX: VRX) have seen their share prices plunging as they find themselves in the midst of the drug pricing controversy.

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