Wall Street shouldn’t be thrilled about this week’s agreement among Democrats on a plan to lower the cost of prescription drugs. But it removes the threat of something that would be far more damaging to pharmaceutical investors.
The agreement, which is backed by the White House, would empower Medicare to negotiate the price of expensive drugs whose market exclusivity granted by regulators has expired. This puts long-term sales of blockbuster drugs like the blood thinner Eliquis or the cancer drug Keytruda at risk.
