Why investors need not be concerned by Hillary's plans to clamp down on drug pricing

Concerns have been mounting in the run-up to the US election, particularly over Hillary Clinton's proposed clamp down on drug pricing, writes Carl Harald Janson.

We believe investors are being overly pessimistic about the impact of her policies. In reality, Clinton's proposals should not concern biotechnology investors. Her primary focus is to prevent generic drug manufacturers hiking prices beyond reasonable levels. She will also like to promote competition within the generic drug segment. In contrast, drugs developed by biotechnology companies are innovative and address real un-met needs. They will not be affected by the policy changes mentioned above. In addition, the Democrats have underlined that innovation is a cornerstone of the futu...