The biotech sector was getting crushed Wednesday afternoon, likely in response to statements made by Democratic Presidential
nominee Hillary Clinton, as well as The White House regarding the increase in EpiPen pricing.
Clinton's statement said, "Over the last several years, Mylan Pharmaceuticals has increased the price of EpiPens by more than
400%. They're now charging up to $600 for a two-EpiPen set that must be replaced every 12-18 months. This both increases
out-of-pocket costs for families and first responders, and contributes to higher premiums for all Americans and their
employers."
"That's outrageous -- and it's just the latest troubling example of a company taking advantage of its consumers. I believe that
our pharmaceutical and biotech industries can be an incredible source of American innovation, giving us revolutionary treatments
for debilitating diseases. But it's wrong when drug companies put profits ahead of patients, raising prices without justifying the
value behind them... I am calling on Mylan to immediately reduce the price of EpiPens."
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The SPDR S&P Biotech (ETF) (NYSE: XBI)
was down more than 1.6 percent at $62.73, while the iShares NASDAQ Biotechnology Index (ETF) (NASDAQ: IBB) was down more than 1.3 percent at $292.22.
Conversely, the Direxion Daily S&P Biotech Bear 3X Shares (NYSE: LABD) was up more than 7 percent at $22.24.
Mylan NV (NASDAQ: MYL), which was already
down this week, lost another 4.4 percent Wednesday to $43.61.
Separately, The White House said pharmaceutical firms risked damaging their reputations with big price hikes.
"I'm obviously not going to make specific comments to specifically second guess the pricing strategy ... of one private
enterprise," White House spokesman Josh Earnest said at a news
briefing. "I will observe, however, that pharmaceutical companies that often try to portray themselves as the inventors of
life-saving medication often do real damage to their reputation by being greedy and jacking up prices."
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