Clinton's Return: Status Quo For The Industry

The US election results were a positive for the drug industry, Hemant Shah of HKS & Co has told the Marketletter, pointing to a continued status quo with no increased regulatory pressure. The results were not good for managed care, because any substantial reform is unlikely for the next year or two.

On Food and Drug Administration reform, he said the agency has become pretty efficient on its own, with approval times already down. Trying to shorten testing requirements is playing with fire; any resulting deaths or serious injuries might push the pendulum all the way back. He was unsure if Dr Kessler would remain.

Drug stocks (see also page 9) have reflected the election results, he said, and doubted if there was more upside left from this. He is still negative on the sector as a whole, since it is too richly valued. Mr Shah said he looks for value rather than being a momentum player, and cannot see much value in the sector right now.