The maelstrom around drug pricing has continued its fury over the past month, which has led to considerable volatility in the biopharma stock market. Investor fears of draconian price controls that will eliminate the return of investment from innovative pharmaceutical R&D are almost certainly overblown, but they do create a lot of market anxiety.
The current widely-held assumption on the part of the investment community is that any pressure on pricing is a wholesale bad for our sector. It certainly is a challenge for those reliant on large semi-annual price increases for their revenue growth, which includes many of the largest biopharma companies; without these price increases, sales figures would sag, analysts would downgrade, and stock performance would suffer.
