<< I do expect new coverage for LGND, which could produce a significant price rise (but I don't expect a short term double on the news). >>
One factor that I feel was keeping a lid on biotechs, was the reduction in government funding, which made drug discovery more expensive.
Yesterday, the news covered a story about generic drug prices, which are skyrocketing. For an example, they showed a supply, of generics, which would normally cost a druggist about $25, now costing about $250-$300. This is very unfortunate for us consumers.
But, for the drug companies, this will supply significant new funds, providing that congress, who is looking into this price explosion, doesn't step in to try and restrict the price increases.
Anyway....... the significant generic price increases should have an positive impact on drug company stock and the biotech companies, that could benefit from the increased availability of drug company funding, and the possible increased prices that they could get for their own new drugs.
Regards, Bob |
