Hillary Clinton is once again going after the pharmaceutical companies in the form of drug pricing attacks. Her latest attack was on Mylan and its aggressive 400 percent price increase over the past decade for its EpiPen drug which uses an auto-injection of epinephrine to treat severe allergic reactions. Mylan acquired the product in 2007, and the price increased from $100 in 2008 to its current cost of ~$600. Hillary Clinton was quoted as stating:
"That's outrageous — and it's just the latest troubling example of a company taking advantage of its consumers," and "It's wrong when drug companies put profits ahead of patients, raising prices without justifying the value behind them."
Even more, after her initial Tweet the iShares Nasdaq Biotechnology ETF (PACF:IBB) sold off ~5% within minutes and moved from $299 to $279 per share by the next day or 6.7% over a two day period (Figures 1 and 2).
Figure 1 – Hillary Clinton’s remarks pertaining to the EpiPen price increase
Figure 2 – Correlation between Hillary Clinton’s tweet and the subsequent sell-off of the biotech cohort
Former Vermont governor Howard Dean also came out swinging against the pharmaceutical and health-care industry stating that reform is needed which necessitates "far more sweeping" than what Dodd-Frank did for the financial industry. He further went on to state: Continue reading "The Political Biotech Charade"