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Pharma stocks soar after US midterm elections

Published on 08/11/18 at 10:48am

Despite the threat of a bipartisan pricing plan, pharma stocks have soared after the announcement of the results of the US midterm elections.

While the Republicans retained control of the house, the party lost control of the Senate thus allowing for a slight Democrat majority of 222 in comparison to the GOP’s 196.

However, analysts are taking the result as a win. Andrea Harris, an analyst at Height Capital Markets commented in suggesting although the industry may be concerned about “headline risk ahead […the] Republican Senate and pharma-friendly Democrats will prevent disruptive policy change.”

Meanwhile RBC Capital Markets’ Brian Abrahams suggested that a political stalemate is the most likely situation, as he described the deadlock as a “best-case scenario”. Either way the midterms call into question the future of the pricing plan.

Nevertheless generic drugmakers are most likely to win out overall as the pricing plan promises to boost business for cheaper drugs.

Louis Goss

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