Investing in the Pharmaceutical Industry

667 Views | 2 Replies | Last: 7 mo ago by I bleed maroon
I bleed maroon
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AG
I'm a long term holder in several Pharmas, including LLY and MRK. Dropped PFE, BMY, and JNJ in the past year or two.

The administration clearly has PBMs in its' crosshairs, and pharma margins overall are likely to come down. Are healthcare providers (UNH and others) agnostic on this issue? I know little to nothing about the inner workings of their pricing models, but is there anyone on the board who would care to explain it to us like we're 5th graders?

At a surface level, it appears Trump wants to reduce end prices paid by Americans relative to other countries. Is this possible with the current system, or will there need to be some form of legislated price controls to achieve this objective? I think the idea that R&D costs be borne equally among all end users world-wide sounds good to most people, but I am unsure how this works practically.
Diggity
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AG
UNH owns PBM's and employs more doctors than any other group in the country, so they're definitely not agnostic.

Drug Channels by Adam Fein is a good resource to research the pharmacy industry.
I bleed maroon
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AG
Thanks! I was considering UNH as a speculative quick hit, but with the PBM overhang, I shall now avoid it.
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