Sector movers: Pharma falls into political cross-hairs again

Pharma was the odd man out on a risk-off day for stockmarkets after Mylan´s price hikes on its EpiPen selft-treatment for anaphylactic shock caused by allergic reactions drew criticism from US presidential frontrunner Hillary Clinto and several US Congressmen.

Clinton joined senators Susan Collins and Claire McCaskill in highlighting US-based Mylan's 480% hike in the price of its EpiPen epinephrine product since the company acquired it in 2007.

Accendo Markets’ Mike van Dulken said Clinton’s comments served “to strike fear into the hearts of healthcare groups and their investors everywhere. As always, the industry remains between a rock and a hard place, treading the fine line between balancing the costs of clinical success (and failure) with the economic laws of supply and demand, all the while trying (often in vain) to satisfy demanding stakeholders without appearing to view the sick as merely a commercial opportunity."

As a result, Hikma Pharmaceuticals and Shire were under pressure.

On the upside, building materials group CRH rallied, giving a boost to the Construction&Materials sector after winching its half-year dividend a touch higher as it reported the early stages of an economic recovery in Europe.

Having been flat in the first quarter, European sale rose 3% in the six months to 30 June, which coupled with a slight slowing in the rapidly expanding Americas and Asia operations, saw interim group revenue grow 35% to €12.7bn.

On a proforma basis that excludes the two major acquisitions completed in the second half of 2015, sales were up 8%.

Top performing sectors so far today
Construction & Materials 6,242.81 +2.20%
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General Industrials 5,232.75 +0.49%

Bottom performing sectors so far today
Oil Equipment, Services & Distribution 15,027.18 -1.73%
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Pharmaceuticals & Biotechnology 14,505.21 -1.23%
Industrial Engineering 9,559.18 -1.16%
Aerospace and Defence 4,570.12 -1.01%