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BUSINESSWednesday 8 March 2017
Losses for drugmakers, hospitals pull stocks lower

MARLEY JAY government would take
AP Markets Writer
NEW YORK (AP) — U.S. action to reduce prices or
stocks declined for the
third time in four days on at least curb price increas-
Tuesday as health care
companies took center es. While Trump has talked
stage.
Drugmakers fell after Presi- about dealing with the is-
dent Donald Trump said
he wants to bring drug sue before, he has never
prices down. Insurers rose
and hospital companies discussed details. Funtley-
dropped after Republicans
in Congress introduced a der said the task might be
bill intended to replace the
2010 Affordable Care Act. harder than it sounds.
Pharmaceutical and bio-
technology companies fell “There’s no government
after Trump said in a morn-
ing tweet that he intends mechanism at the mo-
to bring down drug prices.
The health care proposal ment to control costs di-
gave big health insurers
a boost, but hurt compa- rectly,” he said.
nies that do a lot of busi-
ness with Medicaid. Companies that make
It’s not clear if the bill will
pass the Senate, as sev- high-price drugs took
eral Republicans have al-
ready questioned it. Stocks some of the largest losses.
turned lower at the end of
the day as that criticism in- Biotechnology company
creased, leaving the fate
of the current bill, a key Alexion Pharmaceuticals
part of Trump’s agenda,
uncertain. shed $4.15, or 3.1 percent,
“We’re going to still be
having this conversation to $129.18. Alexion makes
six months from now,” said
Les Funtleyder, health care Soliris, a high-priced drug
portfolio manager for E
Squared Asset Manage- that treats two rare genet-
ment.
ic disorders. Mallinckrodt,

which has faced criticism

Bank of Montreal CEO Bill Downe, center, is applauded as he rings the New York Stock Exchange over repeated increases

opening bell to mark his institution’s 200th anniversary, Tuesday, March 7, 2017. U.S. stocks de- in the price of its HP Acthar

clined for the third time in four days on Tuesday as health care companies took center stage. gel, gave up $1.55, or 3

(AP Photo/Richard Drew) percent, to $49.71.

Elsewhere, energy com- sagged 15.25 points, or 0.3 than any other since World Prescription drug distributor

panies continued to slip percent, to 5,833.93. Two War II except for the de- Express Scripts and biotech

and technology compa- stocks fell for every one cade-long run that ended company Gilead Sciences

nies made smallish gains. that rose on the New York in early 2000. each fell as they bickered

Stocks hadn’t fallen for two Stock Exchange. Since the middle of 2015 over the price of Gilead’s

consecutive days since the On Thursday the current drug companies have re- hepatitis C drugs, some of

end of January, and set bull market will turn eight peatedly tumbled as in- which are listed at $1,000 a

their latest record highs last years old. It’s lasted longer vestors worried that the pill. q

Wednesday.

The Standard & Poor’s 500

Oh Snap? After bursting out of theindex lost 6.92 points, or 0.3
percent, to 2,368.39. The

gate, shares give way Dow Jones industrial av-
erage lost 29.58 points, or

0.1 percent, to 20,924.76. NEWARK, N.J. (AP) — Any- ber of people who use it. launch of several products
The Nasdaq composite one wanting to invest in the The IPO of the Los Angeles and release of multiple up-

company that owns Snap- company was the most an- dates hurt the performance

chat now has an opportu- ticipated arrival since Twit- of its Snapchat app.

nity to do something that ter Inc. entered the public It’s been a mixed bag for

early investors were unable market in 2013. social media. Where Face-

to do: buy shares for less In a recent filing with the book has soared, Twitter

than they cost on the first Securities and Exchange has struggled to find its

day of trading three days Commission, Snap said that way. Mark Zuckerberg’s

ago. it had 158 million daily users company debuted on Wall

After tumbling 12 percent in its fourth quarter, up 48 Street in 2012. It has contin-

Monday, shares of Snap percent from the prior-year ued to enhance its social

Inc. fell another 11 percent period. But Wall Street has network and its ad revenue

in early trading Tuesday, to become skittish about fu- and user base has grown

$21.10. ture growth. fast. Twitter, since its 2013

Snap priced its initial pub- Whereas user growth ex- IPO, has experienced stall-

lic offering of 200 million panded in each consecu- ing revenue growth and

shares at $17 each. Shares tive quarter of 2015, that the company, after the

opened at $24 apiece expansion began to slip in return of co-founder Jack

Thursday and jumped 44 each consecutive quarter Dorsey, has been forced to

percent on its first trading of 2016, hitting just 5 million cut costs and shuffle lead-

day. new users in the final quar- ership. Twitter is now valued

Industry analysts grew leery ter of the year. at $11 billion, while Face-

of slowing user growth num- That was half the user book is valued at $395 bil-

bers last year and everyone growth in the final quarter lion.

is now trying to figure out of 2015. Snap, upon its IPO, be-

the value of a young com- Snap blamed the slowing came more valuable the

pany that is quickly catch- growth late in the year on stalwarts like American Air-

ing up to Twitter in the num- technical issues, saying the lines, Macy’s and Xerox.q