Skip to main content

Market Overview

Biotech Investors Shouldn't Fear Legislation, Even If Hillary Is President And Dems Win Senate Majority

Biotech Investors Shouldn't Fear Legislation, Even If Hillary Is President And Dems Win Senate Majority

In a new report, Evercore ISI analyst Terry Haines discussed the potential for some form of drug pricing legislation in the U.S. within the next two years.

The SPDR S&P Biotech (ETF) (NYSE: XBI) is down 35.3 percent in the past six months since Democratic presidential front-runner Hillary Clinton brought the issue of drug pricing to the forefront of the campaign debate.

Individual names like Gilead Sciences, Inc. (NASDAQ: GILD) and Biogen Inc (NASDAQ: BIIB) are getting killed on the fallout as well.

Some biotech investors are even concerned that President Obama could push for some type of drug pricing law in his last year in office, but Haines sees this possibility as highly unlikely. “Our long-held view is that there will not be drug pricing legislation in 2016 and that the likelihood of drug pricing regulation is very small in 2017,” he explained.

Related Link: Dynavax, GlaxoSmithKline Battling In Same Industry: Who Will Win?

Evercore ISI sees no chance that a Republican majority in Congress will pass any form of drug pricing legislation this year, and they believe that President Obama will not attempt a drug pricing-related executive order.

When it comes to 2017, the firm’s base-case prediction is that Republicans will maintain their majority in Congress and that Clinton will be elected president. However, Haines adds that even if Clinton is elected and the Democrats win the majority in the Senate, the Republican majority in the House will still block any substantive drug legislation.

Disclosure: the author holds no position in the stocks mentioned.

Image credit: MarcNozell, Flickr.


Related Articles (XBI + GILD)

View Comments and Join the Discussion!

Posted-In: Analyst Color Biotech Long Ideas Politics Top Stories Analyst Ratings Trading Ideas General Best of Benzinga

Latest Ratings

IRIXRoth CapitalMaintains9.0
AMRSRoth CapitalMaintains33.0
VORBarclaysInitiates Coverage On56.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at