Drug-Pricing Debate: Looking Past Big Pharma’s Nightmare Scenario

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Government action might not be needed to pressure prices on some drugs

 

A comprehensive government crackdown on high drug prices isn’t likely soon. Still, investors shouldn’t let their guard down.

Biotech and pharmaceutical stocks have struggled since last summer when the controversy erupted into a big political issue. Last week’s congressional hearing on the Obama administration’s proposed experimental overhaul of the Medicare Part B program served as a reminder of pricing peril.

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