What we’re reading, November 9, 2016: pharma stocks surge following US election news; Mylan will face an FTC probe over anticompetitive practices with the EpiPen; and Walgreens has filed a lawsuit against its former laboratory testing partner, Theranos.
Wall Street opened lower today following news of the Republican candidate, Donald Trump, being president-elect. The global market, too, reacted strongly to the news, with investors pulling out their money in Europe, Asia, as well as down under. Pharmaceutical stocks, however, saw a surge, with the anticipation of a more lenient stance by Trump. The Reuters news agency reports that shares of Pfizer rose 5.2% and Celgene rose 6.7%. European drug makers Roche and Sanofi also saw more than a 4% increase in their stock prices.
However, another drug manufacturer, Mylan, continues to see a downward spiral. The company came under fire in summer this year over the cost of the EpiPen, an epinephrine injection that the company manufactures as treatment for what could sometimes be fatal allergic reactions to food or insect bites. According to STAT news, the Senate Judiciary Committee has now asked the Federal Trade Commission (FTC) to investigate whether Mylan violated the antitrust measure with a program that encourages school districts to purchase the EpiPen. Senator Chuck Grassley (R-IA) and Senator Patrick Leahy (D-VT) sent a letter to FTC chair, Edith Ramirez, stating that Mylan may have been involved in anticompetitive practices with schools, which would necessitate action to safeguard patients, STAT reports.
A lawsuit has been filed in a federal court in Delaware by the drugstore chain Walgreens Co, against its former partner, Theranos Inc. Walgreens alleges that the laboratory-testing company—which came under fire over authenticity of its finger prick test and has shut down its testing laboratories since October 2016—breached a contract. The Wall Street Journal reports that the drug store has claimed $140 million in damages, which is the amount they had invested in Theranos.