Updated: February 29, 2016
With all the bloviating on the campaign trail about reeling in drug costs these days, it’s safe to say the pharmaceutical industry is under siege.
But it’s not all the politicians’ fault; many of the sector’s injuries are self-inflicted. Case in point: Valeant Pharmaceuticals (VRX), whose stock has plunged 62% amid ongoing accounting concerns.
Investors, predictably, have voted with their feet: since the start of the year, the iShares US Pharmaceuticals ETF (IHE) has plunged almost 14%, nearly tripling the S&P 500’s decline.
But as with any selloff, it’s not just sickly stocks that are being punished. It’s the healthy ones, too.… Read more