NEW YORK ( TheStreet) -- Biotechnology companies are basking in a valuation bubble, with many initial public offerings being expanded and oversubscribed and share prices soaring in first-day trading. But other changes in the business environment are gaining momentum that could put pressure on these companies' valuations, notably market forces resulting from health reform.Several trends, most of them nudged forward by President Obama's Affordable Care Act, are coalescing and point to pressures on drug companies to lower the prices they charge consumers for pharmaceuticals. One of the goals of ACA is to decrease the cost of healthcare. Putting pressure on outrageously priced drugs is one way the law aims to do that. The result of that pressure could be declines in profit from new drugs.
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