Pharma stocks could see turbulence from U.S. Senate drug-price hearing - (U.S. News & World Report via NewsPoints Desk)

  • US healthcare stocks could face more turbulence on February 26 when senior executives face questions at a Senate Finance Committee hearing about prescription drug costs, as reported in U.S. News & World Report.

  • Chief executives and other senior management officials from AbbVie, AstraZeneca, Bristol-Myers Squibb, Johnson & Johnson, Merck & Co., Pfizer and Sanofi are scheduled to appear before the committee

  • Wells Fargo analyst David Maris said "we expect the hearing to be negative for the group, and continue to believe investors are under-pricing the risks."

  • Kevin Gade, a portfolio manager at Bahl & Gaynor focusing on pharmaceutical and biotechnology stocks, predicts executives will blame high drug prices elsewhere in the drug-supply chain, such as at pharmacy benefit managers or insurance companies.

  • "I don't think pharma is going to be able to win them over," Gade said, adding that "you can only hope...that anything disastrous is avoided."

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