Dec. 19 at 8:40 PM
$BMY Looks like some selling action following the pricing deal. That's expected but also the wrong reaction from the market. Look at
$PFE and
$AZN after their deals. They've continued to perform well even after lowering prices. Even if you make less profit on some sales it spurs innovation because rentseeking through unnecessarily high drug prices isn't as profitable, there's less geopolitical uncertainty + you have the blessing of the USG.
Maybe that's a bit mafia-esque, "paying for protection" but it is what it is. As long as you stay in the good graces of the USG then the USG also has every incentive to help with the research and innovation and regulation involved with new drug approvals, to shield from frivolous lawsuits, to approve future buyouts.
I view it as overall good for Americans and healthy for the pharmaceutical industry.
