Obama is death to the stock market--down over 1,000 points since his inauguration. ABT's bright future now looks dim:
Drug stocks fall on Obama budget health proposals Thursday February 26, 6:48 pm ET By Linda A. Johnson, AP Business Writer
TRENTON, N.J. (AP) -- Stock prices for major drugmakers fell sharply Thursday as investors were apparently worried about provisions of President Obama's budget proposal that could significantly reduce profits across the pharmaceutical sector.
"Isn't just one thing, it's the whole tenor," said analyst Steve Brozak of WBB Securities. "You're opening a Pandora's box."
One item in the budget that spooked shareholders was support for "new efforts" by the Food and Drug Administration to allow Americans to "buy safe and effective drugs from other countries." During the Bush administration, the FDA opposed the idea and frequently stated that such "reimported" drugs might be counterfeit or otherwise unsafe.
Drug companies and their trade groups have opposed such a prospect even more strongly, claiming that it would reduce the money they have available to fund research to develop new medicines.
"The one area that you have big margins, that's where (the Obama administration is) going to attack," said Erik Gordon, an analyst and clinical professor at the University of Michigan's Ross School of Business. "That'll kick the stock prices down any day."