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Biotech price wars coming your way? Many Healthcare funds may be affected.
IMO, keep an eye to this sector; which has had a wonderful run upwards. Supposing this would be named one of those "forward looking" thingys in company reports related to their best guess.
@Mark Agree. We have held healthcare long enough to absorb a pull back; if it arrives. As is generally the case, of when (how long has the investment been held and its gains) one buys an investment; being that someone who bought just yesterday would not be so happy at this moment today. This type of news may not be of true consequence for anything more than a trading event for the traders. Stay warm. Catch
In the fund family I am in selling means I have to be out of the fund for 60 days.That's a bigger decision than I want to make at this point/Allmy healthcare is in IRAs so taxes are not a factor but if they were given distributions this year I would surely wait till next year.
I didn't read past the headline, my time is valuable, Don't worry about investing in Healthcare and you will be ok in the future...... no 'trading event" news necessary
It's good to read up on some of this stuff. Healthcare is not and will not always be a straight line upwards. There is an active thread here that touchs on this subject.
Insurance companies and plans all have what are called Formularies. These are lists of approved drugs from arthritis and headaches to the hepatitis C protocol in the above thread link. When very expensive drug protocols present themselves, organizations will decide which will get the approval. While money is a big part of the decision, other factors such as safety profile and storage considerations play into the decision. In the case described above, Gilead lost out to AbbVie and that has affected Gilead stock in return.
Biotech drugs are very prone to this kind of treatment. When there are two or three drugs competing for a spot on a major formulary, the decisions can and will have consequences on the stock price.
This practice of a Formulary is not new, rather it has been around for decades.
I work in HC and believe in the LT prospects of HC and Biotech as Americans require and will demand only the best treatments, and will pay up for the best treatments. Americans will not tolerate 3-6 month waits for a CABG, and they won't tolerate the second or third best medication treatments. They will not tolerate the rationing of medical care inherent in socialized medicine.
We continue to own 10% positions in both PRHSX and POAGX, but I firmly believe in the importance of having an exit plan for volatile positions such as these funds. If the chart breaks down, get out. Period.
HC returns will ebb and flow with Stock market prices.... BUT if their is ONE industry in the US most likely to Grow and Flourish in the US....This is it...tb
" as Americans require and will demand only the best treatments, and will pay up for the best treatments. Americans will not tolerate 3-6 month waits for a CABG, and they won't tolerate the second or third best medication treatments. They will not tolerate the rationing of medical care inherent in socialized medicine" Kevindow
Comments
Agree.
We have held healthcare long enough to absorb a pull back; if it arrives. As is generally the case, of when (how long has the investment been held and its gains) one buys an investment; being that someone who bought just yesterday would not be so happy at this moment today.
This type of news may not be of true consequence for anything more than a trading event for the traders.
Stay warm.
Catch
I am sure you read this part, too, eh?
"This type of news may not be of true consequence for anything more than a trading event for the traders."
I don't recall any sky falling crap.....
http://www.mutualfundobserver.com/discuss/discussion/17829/express-scripts-abbvie-gilead#latest
Insurance companies and plans all have what are called Formularies. These are lists of approved drugs from arthritis and headaches to the hepatitis C protocol in the above thread link. When very expensive drug protocols present themselves, organizations will decide which will get the approval. While money is a big part of the decision, other factors such as safety profile and storage considerations play into the decision. In the case described above, Gilead lost out to AbbVie and that has affected Gilead stock in return.
Biotech drugs are very prone to this kind of treatment. When there are two or three drugs competing for a spot on a major formulary, the decisions can and will have consequences on the stock price.
This practice of a Formulary is not new, rather it has been around for decades.
We continue to own 10% positions in both PRHSX and POAGX, but I firmly believe in the importance of having an exit plan for volatile positions such as these funds. If the chart breaks down, get out. Period.
Kevin
BUT if their is ONE industry in the US most likely to Grow and Flourish in the US....This is it...tb
" as Americans require and will demand only the best treatments, and will pay up for the best treatments. Americans will not tolerate 3-6 month waits for a CABG, and they won't tolerate the second or third best medication treatments. They will not tolerate the rationing of medical care inherent in socialized medicine" Kevindow
Merry Christmas,
Ted