How the Mylan scandal is taking down generic drugs

Mylan is down roughly 16% since its most recent peak in mid-August, when Congress and the media first began taking notice of what is now called the “EpiPen Scandal” — huge hikes in the price of a product schools were told to buy.

The iShares Nasdaq Biotechnology Index, which covers the whole industry, has held up well over the last few weeks and is actually up almost 3.9% over the last month. But it has begun rolling over in the last week and is over 12% below its price at the start of the year.

The concern is that Mylan’s troubles could infect the rest of the sector, possibly leading to new regulations in a Hillary Clinton Administration. The index held up well during the fall of Valeant Pharmaceuticals, but the damage this time could be more far-reaching.
By Dana Blankenhorn