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Momo Massacre: Biotechs Are Crashing, Turn Red For 2015
On Sunday, after the latest NYT piece by Andrew Pollack focusing on the "astronomical" prices increases by Valeant we made a simple observation: "More Pain For Biotechs Ahead: Valeant's "Astronomical" Price Increases Take Center Stage; Pfizer Gets Dragged In." Sure enough, on Monday Valeant promptly crashed over 10% as the second round of concerns about price caps emerged.
Then, this morning, the attack against biotech price gouging became two-pronged when this time the WSJ joined in the NYT with an article overnight "For Prescription Drug Makers, Price Increases Drive Revenue" in which the topic was familiar to those following the interplay between "astronomical" biotech prices and the imminent congressional crackdown on said prices:
Attention has focused lately on new drugs with eye-popping prices and on a few whose price a new owner abruptly raised several-fold. But what many drug companies rely on for sales growth is a pattern of steady increases, year in and year out, on older medicines. Wholesale-price increases for the 30 drugs analyzed by the Journal averaged 76% over the five-year stretch from 2010 through 2014. That was more than eight times general inflation.
For 20 leading global drug companies last year, 80% of growth in net profits stemmed from price increases in the U.S., according to a May report by Credit Suisse.
For those wondering, the tone's article was not conducive to further upside in the sector. And, as we warned earlier today...
Another biotech price-increase hit, this time from the WSJ http://t.co/Eo0svhZrjU
— zerohedge (@zerohedge) October 6, 2015
... it was just a matter of time before the market realized that the happy days for biotechs are now over. Sure enough, a quick glance at the Nasdaq Biotech Index reveals that after a modest drop yesterday when mostly Valeant was punished, the weakness today is widespread and is hitting the entire biotech sector which moments ago was down a whopping 6.4%, and just over 3,000, the biotech sector is once again not only red for the year, but danger of taking out the 2015 lows hit in the last days of September.
And here is a long-term chart of the biotech move. Don't worry: they are still supported byh the 666-DMA.
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"Does anyone have drugs to ease my pain?"
Robin Williams, early standup routine
It's cheaper to die than to afford biotech drugs today.
Suicide is painless.
https://www.youtube.com/watch?v=4gO7uemm6Yo
Biotech stocks dive as lawmakers take aim at Valeant for drug price hikeshttp://fortune.com/2015/09/28/democrats-valeant-questioning-drug-prices/
Oh man, this is definitely a pain that a pharmaceutical cannot solve.
its a great system.
"Serfs who occupied a plot of land were required to work for the Lord of the Manor who owned that land, and in return were entitled to protection, justice and the right to exploit certain fields within the manor to maintain their own subsistence."
We still dont have our own land or food. And if you're not employeed or employeed only part-time- you may not take advantage of the advancements in medicine that almost ALL of society contributed to.
The generic drug price ripoffs sanctioned by Obama and his criminal thug of prosecutors shows that the United States is operating just like a fascist distatorship. Criminal prosecutors like Loretta Lynch seize the bank accounts of small businesses on bogus money laundering charges but ignore price fixing and insider trading by companies like Valeant. It is no surprise that these criminal prosecutors, many of them African American, have not indicted one American or Israeli perpetrator responsible for the 9/11 attacks or the anthrax attack or the string of murders that followed the 9/11 attacks, murders which got rid of potential witnesses.
This what happens when you use "ripoff" as a pricing model.
Yes...
The way they run things here is quite similar to the way dictator thugs in African nations run their respective governments. Not sure if there is some sort of connection here, but let me think it over for about 3 seconds and I'll be right back with an answer...
Pharma is about as opaque as you can get with their financials, but they've got long term rentals on most of congress. I expect another round of all sound and fury, signifying nothing......
sound and fury is nothing compared to shock and awe, congress will leap into action right after they hose america on tpp and find someone to fill the gap on pharma.
They have a LONG way to go. Death cross was just the other day.
Other then destruction of America's health care, energy sector, retail, pharma, and middle class, and other then massive blunders overseas, The Messiah is doing pretty well!
the price of living is going up bitchez.
fortunately most of those drugs have nothing to do with living any longer or better. have you read the side effects labels? some say death. uh, no thanks.
You must have missed the advertisement: Death! It's the next best thing to living.
Chart looks like silver end of 2011...
We massacred some MOMO folks.
Pleeeeeeeeeeeeeeeeeeeeeeze!
It's "Monkey Hammered."
Or is that only the term used for PMs?
Looks a massacre but its not. Look, you have 30 minutes to buy spx or nasdaq. Seize it. Buy buy buy it all
+1
With the QQQs HRLY stochastic breaking the 10 handle, they should research a drug for a relatively new disease, first seen in 2015: "Dip Buyer's Ulcerative Colitis"
Plenty of air in these over inflated balloons.
Much of the hot money was parked there.
Why Drug Prices Are So High, And What Can Be Done About It https://www.youtube.com/watch?v=1CsU0_79qFY
Not Here.
http://www.quacera.com/#!special-reports/c11mx
Only three US sectors are viable on world markets: defense, high-tech, and biotech.
It is vital to understand that biotech and big Pharma are very different things. Biotech expertise and business model are based on new drug development. At the same time, Pharma expertise and business model are based on marketing. Big Pharma seldom develops new life-saving drug.
Lately, WallStreet scumbags are using free-FED provided money are acquiring failed drug companies and then using ligal loopholes participating in financial scheeems and forgeries are selling outdated drugs but in reality they are masquerading as biotech.
Pharma/biotech index is going to drop to at least 50% of its highs - I would guess more like 70%.
The entire model is based off of repeated price hikes well in excess of cost/inflation each and every year, made possible by socialized medicine. The entire industry is based off of theft enabled by spreading the pain.
Obamacare was the single best thing to ever happen to this industry - and they took full advantage.
If there was no insurance to pay for these drugs and people had to pay themselves - none of this would happen - drug prices would be 80% lower on average or more.
There is almost no chance the gravy train is coming back - I would guess in their future is 1) Subpoena to congress testimony, 2) possible charges under RICO, 3) possible charges under anti-trust/monopoly, 4) a revision or outright revoke of various provisions in the law which prohibit actual competition, 5) price caps.
The above is just starting to roll - it will get much worse.
Any investors in Amicus Theraputics are welcome to join FOLD class action lawsuit