With a single tweet, Sen. Bernie Sanders has cost Ariad Pharmaceuticals $387 million.
The article retweeted by Sanders was from Stat, a publication that specializes in covering health and medical news. It reported that, since the beginning of the year, Ariad has raised the price of its Iclusig chronic myeloid leukemia treatment by 27 percent. The drug now has a pre-rebate list price of $16,560 a month, or almost $199,000 a year. Even worse for Ariad’s image (to say nothing of consumers), this isn’t the first time they raised the price on that drug, having done so twice last year.
As a result of Sanders’ tweet, Ariad stock ended the day down by 14.8 percent, falling to $11.14 a share. In a statement, Ariad argued that “our pricing reflects our significant investment in R&D, our commitment to the very small, ultra orphan cancer patient populations that we serve and the associated risk with research and development.”
This isn’t the first time a Democratic presidential hopeful has hurt Big Pharma’s bottom line by criticizing unfair practices. In August, Hillary Clinton caused Mylan NV’s shares to fall by 6.2 percent within minutes of calling for them to lower their prices for EpiPens. Then in September, she drove down the Nasdaq Biotechnology Index by tweeting: “Price gouging like this in the specialty drug market is outrageous. Tomorrow I’ll lay out a plan to take it on.” It has also been reported that Donald Trump’s presidential campaign has negatively impacted biotech stocks, as his perceived weaknesses as a candidate makes more likely that Clinton will be elected and implement reforms on the industry. Her plan for lowering drug costs includes allowing Medicare to negotiate them down and not allowing pharmaceutical companies to spend government grants on advertising.