Biotech Values

[DewDiligence]

The quiz in #msg-50508007 was evidently too hard, as no one even attempted an answer. The factual error in the ft.com article is in this paragraph:

Mr. Amusa said that, while US health reform will increase the standard rebate on Medicaid from 15 to 23 per cent of average prices this year, some companies already offer still larger discounts and will experience little extra pain.

Although logical, this simply isn’t true. Under ObamaCare, companies who were already offering Medicaid rebates greater than the required 15% minimum must nevertheless increase their Medicaid rebates by 8 percentage points! In effect, these companies are now being penalized for previously giving the government a better deal than they were required to give.