Drug Pricing Reform:

According to market pricing, a divided Congress would be a positive for pharmaceutical companies, decreasing the likelihood of passing legislation that would reduce drug pricing. "The performance of pharma stocks has tracked the prediction market likelihood of a Democratic victory in the House, suggesting investors believe a divided Congress would reduce the likelihood of major regulatory changes regarding drug pricing," Kostin wrote. He noted, however, that if predictions are wrong and Democrats win control of both chambers, health care policy would likely become the primary focus of the incoming Congress.

Nicholas Jasinski, Barron's <access@barrons.com>