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.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Alkermes as a Sell with a ratings score of D+. This is driven by several weaknesses, which the team believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks the team covers.
You can view the full analysis from the report here: ALKSALKS data by YCharts