Democratic presidential frontrunner Hillary Clinton sent shares of biotech stocks plummeting this week after pledging that her new plan would put an end to biotech drug price gouging. In a new report, Evercore ISI analyst Umer Raffat looks at what exactly biotech investors can expect from the Clinton campaign and how much of a threat she would be to the industry if elected.

What’s In The Plan

The plan that Clinton outlines on her website includes provisions that limit monthly out-of-pocket pending on covered drugs at $250, that clean up the generic drug approval backlog, that mandate that new drug pricing be reflective of improved value and that eliminate corporate write-offs for direct-to-consumer advertising.

The potential for a major overhaul of the biotech industry has clearly spooked the market, but Evercore assures investors that this proposal is likely more about politics rather than policy.

Political Motivation

According to policy analyst Terry Haines, the likelihood of any of Clinton’s biotech proposals becoming law is…

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