Hillary Clinton is speaking out harshly against the pharmaceutical industry once again, and the market is taking notice. This time, Clinton is lashing out in response to what she calls “outrageous” price gouging on EpiPens by Mylan NV MYL.
According to Clinton’s statement, Mylan’s decision to raise the price of EpiPens by 400 percent in the past several years is out of line.
“I believe that our pharmaceutical and biotech industries can be an incredible source of American innovation, giving us revolutionary treatments for debilitating diseases,” Clinton said in a statement. “But it’s wrong when drug companies put profits ahead of patients, raising prices without justifying the value behind them.”
Clinton then specifically called on Mylan to lower prices on EpiPens (which they did Thursday morning).
Since Clinton’s remarks, Mylan shares are down 4.7 percent and both the iShares NASDAQ: Biotechnology Index (ETF) IBB and the SPDR S&P Biotech (ETF) XBI are down more than 3 percent.
Levered biotech ETFs Direxion Daily S&P Biotech Bull 3X Shares LABU and Direxion Daily S&P Biotech Bear 3X Shares LABD have both moved more than 10 percent since Tuesday’s close.
Since Clinton first tweeted about her plan to take on drug price gouging last September, the IBB and the XBI are down 15.6 percent and 18.4 percent, respectively.
At this point, traders must decide whether Clinton’s statements are simply campaign rhetoric designed to get votes in November or whether she intends to butt heads with big pharma if she’s elected. Clinton has a long history of campaigning for healthcare-related issues, so it wouldn’t be surprising to see the issue become one of the centerpieces of a potential Clinton presidency.
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