How Medicare drug price negotiations could hit pharma stocks

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Chris Shibutani ข่าว

Goldman Sachs,Josh Lipton,Julie Hyman

As a string of negative headlines and promising new developments present ideal buying opportunities for investors, Josh Lipton and Julie Hyman perform a mid-...

perform a mid-year check on the pharmaceutical industry. Goldman Sachs senior biotechnology analyst Chris Shibutani joins Market Domination to break down the health of the pharmaceutical large-caps and unrecognized areas of opportunity in the sector.

Um So when you look at your coverage universe Chris and may maybe we can start with the large caps uh that you cover pfizer Merck Eli Lily, big picture Chris.Yeah, thank you for having me on Josh.Broadly, the industry is quite healthy but naturally there are always cross currents happening. Are you think, do you think as a result that there are treatment areas and therefore companies that have been sort of overlooked that you, that you think investors should be looking at right now to be fair?

Uh in terms of thinking about the benefit that isn't to say that it isn't creating very important innovations at the scientific level, whether it's genetic based therapies, gene therapies. In order to move the needle in the minds of investors, you need to be able to continually replenish your new products that are driving the growth as well as the pipeline, which hold the promise for future growth, embedded risks as well.

Companies recognize they can see this coming down the road years in advance because these are date certain events, Josh.And that's often another important reason why business development and M and A is just a foundational part of the playbook, Chris, as I mentioned. Emily Hale was so ill with anorexia she dropped to a size four and had to be sectioned. She now works in the same hospital, helping others."He got the emergency surgery, and the amount of time he had to spend in the hospital probably doubled."

 

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