Downturn in Pharmaceutical Stocks

Chris Beggy chrisb at eden.com
Fri Jun 4 16:40:54 PDT 1999


Beth Goldstein wrote:


> What explanations can be offered, given that there have been no
> significant patent expirations and that there are no obviously significant
> events (like, say, a move to socialize medical care) to explain this
> downturn.
>

Two months ago, a frontpage Wall Street Journal article announced that the drug companies had capitulated in their long-standing campaign to prevent Medicare from covering the cost of prescription drugs. The article implied that sometime in the future, the government would eventually have the power to dictate their prices.

This is bearish for the shares, but insiders seem to be buyers now.

Chris



More information about the lbo-talk mailing list