By Christina Sarich
GM and biotech companies responsible for inflated pharmaceutical prices were already taking a beating on the stock market, but after the latest report from Citron Research classifying Valeant Pharmaceuticals Intl Inc as a “pharmaceutical Enron,” the whole sector has come tumbling down like the house of cards it truly is.
Citron’s report, coupled with the FDA’s report warning that AbbVie Inc’s Viekira Pak and Technivie could cause serious liver injury, mean that stocks fell more than 10-20 percent in a single day. While stocks can regain loses just as quickly, the overall sentiment among investors has not been positive for biotech.With Monsanto’s latest posted losses being in the double digits, is it finally time for the biotech bubble to burst? The GMO manufacturer and maker of glyphosate, which was recently declared ‘probably carcinogenic,’ lost 25 percent in stock value in one quarter, making some hedge fund billionaires that were heavily invested in Monsanto start to count their small change.
Investopedia and other sites have made countless references to the 1990’s tech stock rise and utter crash as being similar to the pattern that is being established with biotech stocks in the 20-teens. Even the Federal Reserve Chairman calls out the industry as overvalued. Janet Yellen hasn’t just done this once with the biotech industry, but twice in the past year.
It looks like people really are tired of paying for drugs that cause them to be ill, or are even fatal, along with the fake ‘food’ that this industry is insistent on selling us.
Biotech is about as ‘over’ as a Big Mac.