Express Scripts Chooses AbbVie Hepatitis C Drug Over Gilead: What It Means for Mutual Fund Investors (GILD)
Shauna O'Brien Dec 22, 2014
Inside the News
Turning Point for Biotech?
Gilead shares are pulling back significantly on today’s news. The only argument that Gilead could have is that today’s announcement limits patients’ options for treatment.
This is a very important event for biotech investors to be aware of since there could be similar moves in the near future, which can impact other biotech companies. If Express Scripts is saving by choosing the cheaper option, its peers including CVS Health (CVS), Aetna (AET) and UnitedHealth (UNH) could follow suit.
It is hard to say if investors should head for the exits on today’s biotech-related headlines. Considering the sector has had consecutive 50% gains, some profit-taking is likely in the cards.
Mutual Funds to Watch
|VTSMX||Vanguard Total Stock Mkt Idx||1.37%|
|VFINX||Vanguard 500 Index||1.28%|
The Bottom Line
Shares of GILD are up 28% YTD.
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