Back to top

Did Hillary Clinton's Tweet Cause the Sell-Off in Mylan (MYL) Stock?

Read MoreHide Full Article

Shares of pharmaceutical giant Mylan Inc. (MYL - Free Report) fell over 5.5% in afternoon trading Wednesday as the company faces increased scrutiny over the pricing of its popular EpiPen allergy medication. Interestingly enough, the sell-off in Mylan stock seems to be caused by a tweet sent out by Democratic presidential nominee Hillary Clinton.

At about 2 p.m. EST, Clinton tweeted the following:

With her account’s signature “-H” marking to signify the message was coming from Clinton herself, the tweet linked to an expansive Facebook post wherein the former First Lady attacked Mylan and its recent price hikes on the EpiPen.

“Over the last several years, Mylan Pharmaceuticals has increased the price of EpiPens by more than 400%. They're now charging up to $600 for a two-EpiPen set that must be replaced every 12-18 months. This both increases out-of-pocket costs for families and first responders, and contributes to higher premiums for all Americans and their employers,” Clinton wrote.

The current frontrunner in what is becoming an increasingly polarizing presidential race would go on to describe Mylan’s behavior as “outrageous” and introduced her plan to address “exorbitant” drug price hikes. Clinton said her plan would require drug companies to explain significant price hikes and prove that additional costs are linked to better patient benefits and value. With that, she called on Mylan to immediately reduce the price of EpiPens.

Although today’s announcement was the first detailed plan to combat the issue, prescription drug reform has been on Clinton’s platform for quite a while. In fact, this isn’t even the first time one of her tweets caused a sell-off.

Back in September of 2015, Clinton tweeted about price gouging in the specialty drug market, which sent biotech ETFS such as (IBB - Free Report) and (FBT - Free Report) tumbling (also read: How Hillary Clinton Crushed Biotech ETFs with One Tweet).

As the presidential race continues to heat up, investors should be on the lookout for other policy initiatives that could have a serious effect on the markets.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


ISHARES NDQ BIO (IBB) - free report >>

Mylan N.V. (MYL) - free report >>

FT-AMEX BIOTEC (FBT) - free report >>

More from Zacks Stocks in the News

You May Like