Prohost Take on What’s Going on in the Drug Sector

President Elect Trump was quoted in a Time person of the year as saying “I am going to bring down drug prices.” The President Elect did not say he is going to bring down the drug producing and developing firms.

Mr. Trump did not say he will bring down medical research, which is mostly conducted by the biotech and pharmaceutical firms.

He did not say he will interrupt the advancement made in the biological sciences or halt the biotechnology revolution, as most of them are made by the drug firms.

As a matter of fact, the President Elect did not mention the drug companies at all. All he said is that he is going to bring down the drug prices, which, we all know that they are skyrocketing and becoming increasingly unaffordable. Yet, we also know well that these high prices are not caused solely by the drug firms.

Being a businessman, Mr. Trump will most probably appoint neutral experts who could pinpoint the real sources of the waste in the health budget and of the extra-spending. Most importantly, these experts should pinpoint the entities that feed on the healthcare budget without contributing anything positive of valuable to the healthcare, including research.

A good job done will be able to lower the drug prices, but with results that would surprisingly be in favor of the drug firms not against them. It has been proven through many incidences time and time again that the drug manufacturers have not been involved in raising the drug prices, but other parties, which are supposed to negotiate the prices in favor of the consumers have done so, only to increase the drug prices to their own favor.

We repeat, when President Elect Trump said he will bring down the prices of drugs, he did not rush to accuse the drug firms like others did during the election campaign. He did not mean to destroy the firms in the middle of a great, huge, breath-taking advancement in the treatment of diseases.

He will care not only about the patients’ pockets, but more important, about those firms that are bringing those patients hope for survival after having lost it at the hands of unsafe and ineffective treatments old treatments

Bottom line, What Trump said did not mean slaughtering the drug companies, which are being slaughtered at the hands of self-interest greedy shorting billionaires.

By the way, Ariad (ARIA) is a biotech firm that enjoys solid scientific fundamentals. Soon it will have its second approved cancer drug, this time for a type of non-small-cell-lung cancer (NSCLC). The firm is creating its breakthrough products in house and developing them with its own money. Recently, it announced good news about the lung cancer drug, which we will soon analyze and elaborate on.

We stick to our picks and will not abandon the biotech sector or the firms we picked because of a selloff that is totally and completely baseless and fraud.  

Prohost Forward-Looking: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our ‘opinions’ and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.

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