Hillary Clinton Tweets, IBB Drops
Multiple news outlets reported Hillary Clinton is cracking down on Biotech. But her anger was focused on one company in particular – Mylan, the maker of EpiPens.
Hillary Clinton Tweets, IBB Drops
With One Single Tweet, Hillary Clinton Caused The iShares NASDAQ Biotechnology ETF (IBB) To Have Its Worst Day Since June 27th.
From 2007 to 2015, Mylan raised EpiPen wholesale prices from $56.64 to $317.82, an increase of 461 percent. During the same time frame, the company’s CEO, Heather Bresch, saw her total compensation increase from $2,453,456 to $18,931,068, or 671 percent.
Mylan continuously raised EpiPen prices, even raising EpiPen prices 15 percent every other quarter from 2013-2016. Bloomberg reported EpiPens provided 40 percent of the company’s profits in 2014. As a result, Mylan saw its stock price more than triple, from $13.29 in 2007 to a high of $47.59 in 2016.
EpiPens are filled with epinephrine, a hormone which ends an allergy attack. Because epinephrine is an unstable hormone; EpiPens need to be replaced regularly so that the dosage inside remains correct. Most people with severe allergies keep an EpiPen around at all times as a safety precaution. As a result of that, six years ago, the US Food and Drug Administration ruled that the devices have to be sold in packs of two because some children need more than one at a time to fight an allergy attack.
Clinton called the price hit “outrageous” and “the latest troubling example of a company taking advantage of its consumers” in a statement. She then tweeted
EpiPens can be the difference between life and death. There's no justification for these price hikes. https://t.co/O6RbVR6Qim -H
— Hillary Clinton (@HillaryClinton) August 24, 2016
And Mylan’s stock saw a -5.41% drop. The IBB saw a 3.36% drop from where it was resting, And other Biotech companies, such as Insys also saw their stock dip. In addition, multiple senators have joined Clinton from both sides of the aisle. Lawmakers are calling for investigations into the price increase of EpiPens, including: Republican Senator Chuck Grassley, chairman of the Senate Judiciary Committee, Senator Amy Klobuchar, the top Democrat on the committee’s antitrust subcommittee, Republican Senator Susan Collins
Biotech stocks will continue to dip. If Clinton wins the presidency, expect to see Biotech companies come under tighter regulation, and see their shares drop significantly.
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Featured image via Forbes
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