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Washington Threatens; Wall Street Reacts

This article was originally published in RPM Report

Executive Summary

The biotech investment boom hit the brakes at the end of the first quarter when Rep. Henry Waxman (D-Calif.) publicly complained about Gilead’s pricing for the hepatitis C therapy Sovaldi. The fact that Waxman’s attack has little substantive impact didn’t seem to matter. Another Washington threat—to undo “tax inversion” strategies—is probably much more real, but may actually boost the sector for the rest of 2014.

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