Trustnet Magazine Issue 43 September 2018 | Page 20

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Big biotech recovered quickly from the threat of price caps,
but Rebecca Jones says it faces a larger threat from within
A clean bill of health?
T
he IT Biotechnology &
Healthcare sector enjoyed
a stellar period of growth
in the three years to
the start of July 2015, its gains of
142.58 per cent almost treble those
of the average IT Global trust. The
rally came to a grinding halt that
summer, however, when Donald
Trump and Hillary Clinton chose
drug pricing as a key battleground
of the US election campaign.
Nervous that any win would lead to
drug price-caps, investors ran for
the hills and by 31 March 2016 the
sector had fallen by more than 20
per cent from its peak.
Nothing to worry about
The subsequent two years have,
arguably, shown there was nothing
to worry about. The Trump
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