ES will want deals on ABBV's other drugs now. The precedent set is really damaging for the industry, but particularly for ABBV.
An aggressive marketing campaign promoting the 1 pill solution is not a bad idea at this time to get the public asking for it only to find out that EX requires ABBV.....
You are right insurers don't lose. You are wrong that they will keep less. They will pay for the drugs but premiums will increase to cover the cost. No different than an insurance company after a hurricane. Premiums rise to cover the loss, protecting their profit margins..
Agree. However, you know GILD is volatile and provides buying opportunities on a regular basis. Would it not be logical to assume the current PPS is higher than a future buying opportunity?
I have owned BIPIX since June 2013. Up 98%. Need to be careful though...this is a leveraged fund (2x). I own and recommend HCPIX (also Profunds leveraged)...it carries GILD and CELG as top 10 holdings but some of the broader plays like JNJ, PFE, MRK, UNH as well. HCPIX up about 40% this year.
I would do a similar deal with both CVS and MEDCO where the GILD has exclusivity, shutting out the ABBV drug. This would hurt ABBV and EX....they can have their substandard drug and discount.