SmurfVA's Random Picks

[Ned Serious]

IBB - GILD - Friday's Mess. The IBB took a big hit on Friday as we all know. Not known specifically was the reason why. Could just be one of those things that needed to happen, or the start of a new trend.

On Friday GILD received a request by House Democrats to explain the cost of their $84k priced hepatitis drug. The stock was down about 5% and some other similar stocks were also hit.

link: http://www.businessweek.com/news/2014-03-21/gilead-asked-to-explain-84-000-price-of-hepatitis-c-treatment

Gilead Sciences Inc. (GILD:US) is being asked by U.S. House Democrats to explain how the company set its $84,000 price for hepatitis C treatment Sovaldi.

The lawmakers also asked Gilead Chief Executive Officer John Martin to explain what is being done to make sure the medicine gets into the hands of low-income patients, especially in government-run health programs.

“Our concern is that a treatment will not cure patients if they cannot afford it,” Democratic representatives Henry Waxman of California, Frank Pallone Jr. of New Jersey, and Diana DeGette of Colorado, wrote in a letter sent yesterday. The lawmakers asked Gilead to brief Congress by April 3.

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GILD up 1.3% in pre-market trading. IBB up 1.3% pre-market.

Bob Stocks had been mentioning that generic drug stocks had been on fire recently. I'm not sure if this would be the opposite play of something like GILD or not. But could be a reason.

Just trying to connect all the dots to see if they do connect, or just are random. So, I'll be watching GILD today and if it moves in tandom with the IBB, etc.