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."
To read more NewsPoints articles, click here.