Zacks Industry Outlook Highlights: The Medicines Company, Optimer Pharma and
CHICAGO, Dec. 7, 2012
CHICAGO, Dec. 7, 2012 /PRNewswire/ --Today, Zacks Equity Research discusses
the U.S. Pharma & Biotech, including The Medicines Company (Nasdaq:MDCO),
Optimer Pharma (Nasdaq:OPTR) and Cubist Pharma (Nasdaq:CBST).
A synopsis of today's Industry Outlook is presented below. The full article
can be read at
A major event that will have a significant impact on pharma and biotech stocks
is the upholding of the Patient Protection and Affordable Care Act (ACA) by
the Supreme Court in late June 2012. The Act, popularly referred to as
"Obamacare," passed through Congress in 2010, represents major changes in the
nation's healthcare sector.
The Act will provide coverage to 32 million uninsured Americans, make
healthcare facilities more affordable, expand coverage for customers with
pre-existing health conditions and keep a check on health insurers. The
healthcare reform aims to end the discrimination policy of insurance
companies, create competition amongst insurers through the establishment of
health insurance exchanges, add value to the overall healthcare system and
The upholding of the Act is a big win for pharma companies as the coverage
base will increase.
Meanwhile, the signing of the Gaining Antiobiotic Incentives Now (GAIN) Act
should benefit companies pursuing the development of novel antibiotics. Once
approved, these products will enjoy an additional five years of marketing
exclusivity. Companies that should benefit from this Act include
The Medicines Company
) among others.
The US government is also exploring options which will help increase the
availability of generics. The Obama administration announced that it is
looking to implement a proposal under which the exclusivity period for
biologics will be cut down by 5 years, thereby allowing generics to enter the
The government is also seeking to increase the availability of generics by
preventing companies from entering into anti-competitive or "pay for delay"
agreements which push out the availability of generics. These initiatives, if
implemented, would result in additional pricing competition and genericization
in the pharma industry. Moreover, the establishment of a biosimilar pathway
will lead to the availability of cheaper versions of biologics.
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