Pardon me, but I have a few things to say about...
1. Add Donald Trump to the list of politicians driving down biotech stock prices.
Trump's self-immolating campaign for the presidency and the turmoil it's creating within the Republican party has healthcare investors more concerned than ever about Democrats winning the White House and Congress.
A government unified under Democratic control could more easily enact legislation to regulate prescription drug prices.
Through Friday, the iShares Nasdaq Biotechnology ETF (IBB - Get Report) has dropped 8% since Oct. 7, when Trump's "I can grope women because I'm a celebrity" comments were first aired. The IBB is trading near flat Monday. Just a few weeks ago, there was genuine optimism that biotech stocks were on a healthy rebound heading into the end of the year.
Trump's implosion trashed the momentum. The IBB, which mirrors the Nasdaq Biotechnology Index, is down 21% for the year.
There is a possible bright side to all this. Come Nov. 8, if Republicans manage to maintain control of the House or Senate, the likelihood of meaningful drug-price legislation becoming law fades, which in turn, could spark a rally in biotech stocks.
Another reason biotech stock prices are sliding: Big clinical trials keep failing!
With the caveat that anything is possible, a Shire takeout of Radius doesn't make much sense. Radius is developing an osteoporosis drug currently under FDA review. Shire once sold an osteoporosis drug but doesn't any longer and there's no indication from the company that it wants back into that market.
Then, there's the decision in early October by MPM Capital, Radius' third-largest shareholder (and an insider due to a board seat) to distribute 2 million shares of Radius back to its investors. The distribution of Radius stock is not considered a sale but the price at which the stock is distributed is used as a benchmark for the performance of MPM's fund. If Radius is later acquired for a large premium, MPM would not be capturing that upside in its fund.
But hey, keep speculating!
3. Bernie Sanders is no Hillary Clinton when it comes to killing a biotech stock. He needed help from Matt Herper of Forbes.
Drug corporations' greed is unbelievable. Ariad has raised the price of a leukemia drug to almost $199,000 a year. https://t.co/EB4nEPxP2G— Bernie Sanders (@SenSanders) October 14, 2016
Note the time of Bernie's Ariad Pharmaceuticals (ARIA) tweet: Friday at 12:39 pm EDT.
Ariad's stock price didn't react for one hour.
But on Friday at 1:27 pm EDT, Herper, widely followed on Twitter, retweeted Bernie's Ariad tweet. Minutes later, more tweets from traders start popping up, tying Bernie's comment together with the "$ARIA" stock symbol. That got the ball rolling downhill fast.
$ARIA vol drop— ICEMAN (@IcemanTrading) October 14, 2016
Pro tip for Bernie: If you're going to tweet about stocks, don't forget to use the "$" sign and the ticker symbol.