NEW YORK (TheStreet) -- Biotech stocks got a boost after Donald Trump was elected president last Tuesday, as he is expected to reduce drug pricing pressure on the group.
In addition, Trump previously said that he wants to help lower the tax rate U.S. companies pay when bringing back cash from overseas. This money could then be used for M&A in the biotech sector.
Alkermes (ALKS) CEO Richard Pops spoke on his sector's post-election response on CNBC's "Power Lunch" Tuesday afternoon.
"It seems like the stocks recovered quite a bit after the election," he noted. "It just revealed how much pressure the whole group was under due to this relentless focus on drug pricing. I certainly hope we have an ongoing dialogue about the value of medicines and the rationale behind pharmaceutical pricing."
Patients are having to pay too much for their medicine and that's because of both the price of the drugs, as well as the type of insurance they have, he noted. "I think many people are realizing now that they actually don't have insurance that covers them when they really need it, when they get diagnosed with serious and chronic diseases."
But while patients are "exposed to too much expense" while getting their medicine right now, "that doesn't mean the medicines aren't valuable," he noted.
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