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Wed Jan 27, 2016, 05:30 AM

Trump drug cost comments raise new risks for pharma stocks

Source: Reuters

Comments from Republican presidential front-runner Donald Trump that Medicare could reap huge savings by negotiating with drugmakers raise new risks for the biotech and pharmaceutical industries, whose shares have been pressured by criticism from Democrats.

Trump told a New Hampshire crowd on Monday night that "$300 billion could be saved" by such negotiations.

"We donít do it. Why?" Trump said. "Because of the drug companies." Trump leads in opinion polls among Republicans vying for their party's nomination for the Nov. 8 presidential election.

The Nasdaq Biotechnology index .NBI was off 0.7 percent in Tuesday afternoon trading, underperforming solid gains for the major U.S. stock indexes.

Democrats and other critics have hammered away at drug costs in recent months, raising investor concerns that future price cuts could hurt pharmaceutical and biotech companies. Biotech stocks tumbled last September after Democratic presidential front-runner Hillary Clinton tweeted her intent to tackle high prices.

Read more: http://www.reuters.com/article/us-usa-election-trump-pharmaceuticals-idUSMTZSAPEC1QKUC2NK

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 05:36 AM

1. Would Hillary do that?

 

Just wondering.

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Response to frizzled (Reply #1)

Wed Jan 27, 2016, 05:44 AM

3. Yes, it's a little further down the article

"The potential for the huge U.S. Medicare program for the elderly to use its leverage to negotiate prices has long been a proposal backed by some Democrats, and was part of Clinton's plan to rein in drug costs unveiled last September."

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Response to frizzled (Reply #1)

Wed Jan 27, 2016, 05:49 AM

4. I do not think she would ACTUALLY do that. But it looks and reads good, doesn't it?

 

Remember, we are always admonished that Congress will not work with Bernie - doubties they would work with Hillary, in between hearings aimed at discrediting her. This is a PROPOSAL, but it will be touted as actual proof that she did something, as usual.

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Response to frizzled (Reply #1)

Wed Jan 27, 2016, 06:06 AM

8. Actually, both she and Sanders have called for it. Trump is way off on his savings, but the

sentiment is correct. We spend roughly $300,000,000 on drugs here. If he gets a $300 Billion savings, we are left with generic aspirin.

Interestingly, while Medicare supposedly can't negotiate, private insurers can and do, even Medicare Advantage plans.

Clinton and Sanders call for negotiating drug prices -- http://money.cnn.com/2015/09/28/news/economy/medicare-drug-prices/

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Response to Hoyt (Reply #8)

Wed Jan 27, 2016, 07:30 AM

12. Thanks for good info and points very well put, Hoyt.

$300,000,000,000 for drugs - Trump's $300,000,000,000 = generic aspirin.

Our candidates all call for reversing the law not allowing Medicare to negotiate. That will happen because it is a very bad, corrupt law and we need to change it.

Seriously, Big Pharm is facing big losses (they can afford them just fine!) with the next Democratic administration. Passage of the ACA was huge, but it was just the beginning.

Here are a few details from "Hillary Clintonís Plan for Lowering Prescription Drug Costs."

* Allow Medicare to negotiate drug and biologic prices.
* Allow Americans to import drugs from abroad.
* Demand a stop to excessive profiteering and marketing by denying tax breaks for direct-to-consumer advertising and demanding that drug companies invest in R&D in exchange for taxpayer support..
* Encourage competition to get more generics on the market.
* Create a Federal backstop for when there are excessively high-priced drugs that face no competition.
* Cap what insurers can charge consumers in out-of-pocket costs ... Clintonís plan will require health insurance plans to place a monthly limit of $250 on covered out-of-pocket prescription drug costs...
* Fully fund the FDAís Office of Generic Drugs to clear out their multi-year generic drug approval backlog, which has kept competitors off the market, ...

She plans all this and a LOT more, all spelled out at: https://www.hillaryclinton.com/briefing/factsheets/2015/09/21/hillary-clinton-plan-for-lowering-prescription-drug-costs/

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Response to Hoyt (Reply #8)

Wed Jan 27, 2016, 09:12 AM

15. We spend 300 million and he's going to save us 300 billion?

 

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 05:42 AM

2. Well,

I find myself in agreement with Mr. Trump on this issue.

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Response to Sherman A1 (Reply #2)

Wed Jan 27, 2016, 05:50 AM

5. Yeah, Trump leveraging his position as the outsider

It's pretty smart. His being independent of his party's mainstream political establishment allows him to state the obvious in this case.

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 05:50 AM

6. These negotiations were forbidden by Congress in 2003

Good luck getting it reversed.

Getting it forbidden took the votes of the Repubs, plus some bought-and-paid-for Democrats (DiFi, eg). The voting process was congressional corruption exemplified.

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Response to JustABozoOnThisBus (Reply #6)

Wed Jan 27, 2016, 06:05 AM

7. Which is why Hillary feels it's a safe issue

sounds good but don't have to do anything about it because the repugs won't let her. It's also funny the Trump supporters will vote for him no matter how anti-repuglican he sounds.

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Response to JustABozoOnThisBus (Reply #6)

Wed Jan 27, 2016, 06:49 AM

9. They were?

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Response to sakabatou (Reply #9)

Wed Jan 27, 2016, 07:15 AM

10. Yes

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Response to underpants (Reply #10)

Wed Jan 27, 2016, 07:17 AM

11. Well fuck.

Looks like we won't be able to turn it over until the loons are out if even that.

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 07:45 AM

13. Trump's always going to negotiate everything

His fancy two-step is going to wear thin

There's little behind it except ego

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 08:57 AM

14. Does he not know the GOP has blocked every effort to do that?

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Response to sinkingfeeling (Reply #14)

Wed Jan 27, 2016, 01:41 PM

16. which is why he's burning the party down and remaking it in his image--like Harper

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 02:21 PM

17. Medicare is only part of it. And government doesn't have to set drug prices directly. There is

sufficient authority to mandate that should you freely choose to do any business here, the the US will be considered the equivalent of most favored nation status, i.e. no drug could cost more more here than it's lowest price anywhere globally.

Or simply accomplish it with the virtually unlimited Article taxing power: Any drug sold for more than the lowest global price will require a tax on the seller which cannot be paid by the buyer. That tax shall be 110% of the difference between the selling price and the lowest price globally - and the government shall then rebate 105% back to the buyer, keeping 5% administrative costs. And if you do not comply with a smile, you have no patent rights in the US and there are no restrictions on re-importing your products (which there shouldn't be anyway).

So you don't have to do business here, you can always make a business decision to sell elsewhere. Experience with autos is that the makers comply with California requirements rather than bypass the largest market.

And other medical costs? If you elect to hold a medical licence, part of the requirement will be pro bono work. Your choice as there is nothing forcing you to practice medicine in the US. Britain's NHS is always looking for doctors to underpay.

I favor a similar model for movie theater snacks.

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 02:47 PM

18. Some numbers above are way off . .

 

the U.S. spends $ 375 BILLION per year on prescription meds,
and some meds are priced 400% more than they should be.

Trump's figure of saving $ 300 BILLION PER YEAR is a stretch,
but not impossible.

Most people just don't grasp the magnitude of the rip-offs
in the health care system.

It is amazing that Americans tolerate this ($1,000 per year being
stolen from every one of us), and it shows how timid we really are.

Land of the brave? Not hardly.

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Response to Lodestar (Original post)

Wed Jan 27, 2016, 02:49 PM

19. And you'll note IN the Reuters article cited above . .

 

that the concern is for Big Pharma stock values,

NOT AMERICANS BEING RIPPED OFF.

"Journalism" for the 1%

grrrrrrr !

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