Zacks Industry Outlook Highlights: The Medicines Company, Optimer Pharma and Cubist Pharma
For Immediate Release
Chicago, IL – December 07, 2012 – Today, Zacks Equity Research discusses the U.S. Pharma & Biotech, including The Medicines Company (MDCO), Optimer Pharma (OPTR) and Cubist Pharma (CBST).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at
http://www.zacks.com/commentary/24869/pharma--biotech-stock-outlook-dec-2012
A major event that will have a significant impact on pharma and biotech stocks is the upholding of the Patient Protection and Affordable Care Act (:ACA) by the Supreme Court in late June 2012. The Act, popularly referred to as “Obamacare,” passed through Congress in 2010, represents major changes in the nation’s healthcare sector.
The Act will provide coverage to 32 million uninsured Americans, make healthcare facilities more affordable, expand coverage for customers with pre-existing health conditions and keep a check on health insurers. The healthcare reform aims to end the discrimination policy of insurance companies, create competition amongst insurers through the establishment of health insurance exchanges, add value to the overall healthcare system and reduce premiums.
The upholding of the Act is a big win for pharma companies as the coverage base will increase.
Meanwhile, the signing of the Gaining Antiobiotic Incentives Now (GAIN) Act should benefit companies pursuing the development of novel antibiotics. Once approved, these products will enjoy an additional five years of marketing exclusivity. Companies that should benefit from this Act include The Medicines Company (MDCO), Optimer Pharma (OPTR) and Cubist Pharma (CBST) among others.
The US government is also exploring options which will help increase the availability of generics. The Obama administration announced that it is looking to implement a proposal under which the exclusivity period for biologics will be cut down by 5 years, thereby allowing generics to enter the market sooner.
The government is also seeking to increase the availability of generics by preventing companies from entering into anti-competitive or “pay for delay” agreements which push out the availability of generics. These initiatives, if implemented, would result in additional pricing competition and genericization in the pharma industry. Moreover, the establishment of a biosimilar pathway will lead to the availability of cheaper versions of biologics.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2679.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4581.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Read the analyst report on MDCO
Read the analyst report on OPTR
Read the analyst report on CBST
More From Zacks.com
