Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...

Wall Street's $210b healthcare wipeout

Pfizer and Merck & Co. each fell about 1 per cent. They were last year’s top gainers in the Dow Jones Industrial Average and now are among 2019’s biggest laggards – after UnitedHealth Group and Walgreens Boots Alliance.

Hospital and insurance stocks were among the week’s worst performers. HCA Healthcare slid 9.9 per cent and traded at its lowest price since July.

“Clearly, huge stock impacts to HCA and managed care can’t be ignored and ‘collateral damage’ to sub-sectors like biopharma in the following days are reflective of a view that mutual funds are drawing down and souring” on health care, Jefferies analyst Michael Yee wrote in a note.

Yee pointed out that the SPDR S&P Biotech ETF was still up 18 per cent for the year through Wednesday and said “there’s no reason momentum can’t drive it another 10 per cent lower from here” into earnings, which is seasonally weak for biopharma anyway.

Deeply indebted companies and those with medicines heavily used by Medicare recipients or subject to rebating, such as Bausch Health Cos., may be most exposed to the selling pressure, according to Wells Fargo’s David Maris. Smaller generic companies or those with cash pay products should be better insulated from sector concerns, although so far “that has not been the case,” he wrote in a note.

Evercore ISI analyst Umer Raffat, in a research note to clients, tried to calm investors’ nerves, underscoring the high costs that proposals such as “Medicare for All” would entail, if passed.

“Sure — you can’t argue with the tide on drug pricing into elections next year — and perhaps that’s effectively what is driving the stock moves,” Raffat wrote. “But I seriously question how practical some of the proposals are.”

Leerink’s Ana Gupte, who has covered the managed-care industry

Read More Here...