Drug Prices, Stocks and the Democratic Win
Greg Mankiw points to some interesting data on the price of stocks for Big Pharma.
While overall the stock market was up, the stock price of these big pharamceutical companies took a hit? Mankiw’s interprets this data to mean that the Democrats are going to do something about drug prices. My guess is he is right, and that something will be the “donut hole” in Medicare Part D. I also agree with Prof. Mankiw, that this will likely mean less research into new drugs in the future. And as Prof. Mankiw points out, “this is good news if you are going to get sick now, not so good if you are going to get sick in the distant future.” Frankly, I’d find it quite ironic (and sad) if the Democrats do close the “donut hole” and then it delays or even prohibits cures for things like Alzheimers and Parkinsons.