Stock Markets

US Chamber of Commerce sues over government’s drug pricing power

Published

4 months ago

June 10, 2023

The U.S. Chamber of Commerce on Friday sued the federal government, challenging a new law that for the first time gives Medicare the power to negotiate drug prices with pharmaceutical companies.

In a complaint filed in federal court in Dayton, Ohio, the chamber said the pricing program violated drugmakers’ due process rights under the U.S. Constitution by giving the government “unfettered discretion” to dictate maximum prices.

It also said the program would impose exorbitant penalties on drugmakers that don’t accept those prices, and amounted to an ultimatum: “agree to whatever price the government names, or we’ll smash up your business.”

The U.S. Department of Health and Human Services administers Medicare through its Centers for Medicare & Medicaid Services.

A spokeswoman said the agency will vigorously defend the program, which is already helping lower healthcare costs for older adults and people with disabilities. “The law is on our side,” she added.

Friday’s lawsuit by the chamber, one of the most powerful U.S. business groups, came three days after Merck & Co filed a similar lawsuit in Washington, D.C.

Both lawsuits contended that price controls would force drugmakers to pull back on developing new drugs, causing long-term harm to Americans and their health.

Other drugmakers have also objected to the pricing program, which is part of last year’s Inflation Reduction Act. Pricing changes following negotiations on 10 costly drugs selected by CMS would take effect in 2026.

Americans pay more for prescription drugs than prices in any other country.

The Biden administration hopes to save $25 billion annually by 2031 by having Medicare, the government health plan for people 65 and over, negotiate prices.

White House spokeswoman Karine Jean-Pierre said on Tuesday the government was confident it would win the Merck case.

“There is nothing in the Constitution that prevents Medicare from negotiating lower drug prices,” she said.

The chamber also warned that allowing the pricing program would set a bad precedent.

“After all, if the government can impose price controls in the pharmaceutical industry, why not elsewhere?” Chief Policy Officer Neil Bradley said in a statement.

The case is Dayton Area Chamber of Commerce et al v Becerra et al, U.S. District Court, Southern District of Ohio, No. 23-00156.

Stock Markets

Crypto Markets Rally: Bitcoin and Ethereum Lead the Charge, Coinbase and Marathon Digital Shares Rise

Published

21 hours ago

October 3, 2023

Crypto Markets Rally: Bitcoin and Ethereum Lead the Charge, Coinbase and Marathon Digital Shares Rise

The major players in the cryptocurrency market, and , saw significant gains on Monday, with Bitcoin surging to $28,569.40 and Ethereum rallying to $1,727.98. Other cryptocurrencies including , which reached $24.01, and , which rallied to 27 cents, also experienced notable increases.

In the wake of this crypto rally, stocks related to the sector also saw substantial movements. Coinbase (NASDAQ:) Global Inc.’s shares rose to $78.46 and Marathon Digital Holdings Inc.’s shares jumped to $9.62 on Monday. Meanwhile, the Bitwise Crypto Industry Innovators ETF increased to $7.03 and the Grayscale Bitcoin Trust rallied to $20.12.

However, not all companies in the crypto-related sector experienced gains. Overstock.com (NASDAQ:)’s shares dropped to $15.50 and Tesla (NASDAQ:) Inc., which has previously invested heavily in Bitcoin, saw its shares decrease to $247.66.

In addition to the market leaders Bitcoin and Ethereum, other cryptocurrencies like , , , , and Polygon also moved notably on Monday. NVIDIA Corp (NASDAQ:)., a leading graphics processing unit (GPU) manufacturer that is widely used in cryptocurrency mining operations, also benefited from this uptick in the crypto market with its shares climbing to $447.66.

Overall, Monday marked a significant day for cryptocurrency markets as well as for companies involved in the sector. The reasons behind these movements are varied and complex, reflecting the multifaceted nature of this rapidly evolving industry.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Stock Markets

Fed’s Powell: Economy still working through the impact of the pandemic

Published

21 hours ago

October 3, 2023

Fed's Powell: Economy still working through the impact of the pandemic

By Howard Schneider

YORK, Pa. (Reuters) – The U.S. economy is still dealing with the aftermath of the COVID-19 pandemic, Federal Reserve chair Jerome Powell said during a meeting with community and business leaders in York, Pennsylvania.

“We are still coming through the other side of the pandemic,” Powell said, noting labor shortages in healthcare, ongoing difficulties with access to child care, and other issues heightened by the health crisis. He did not comment on current monetary policy or the economic outlook in brief opening remarks.

Stock Markets

Indian Equity Markets End September on a High Note

Published

4 days ago

September 30, 2023

Indian Equity Markets End September on a High Note

Indian equity markets concluded the month of September on a positive note, with significant gains recorded on Friday. The rose by 320.09 points to close at 65,828.41, while the NSE’s Nifty50 advanced by 114.75 points to settle at 19,638.30. The BSE midcap index also registered gains, reflecting an overall uptick in the market.

These gains were primarily driven by positive global cues and investments in the metal, oil & gas, and power sectors. However, the IT sector showed signs of underperformance as indicated by the Nifty IT index.

Market analysts Amol Athawale and Vinod Nair offered insights into market trends and challenges. They noted encouraging GDP data from Britain that further reinforced market optimism.

In broader markets, Authum Investment & Infrastructure hit an upper circuit of 20 percent. Yet, not all stocks performed well; Shreyas Shipping and Finolex Cables underperformed on Friday.

Among other stocks, Apollo Hospital Enterprises and Sun Pharmaceuticals saw gains while Tata Consultancy Services (NS:) lagged behind. The volatility index, India , also saw a considerable drop, indicating a decrease in investor fear or uncertainty about future market movements.

This positive performance of the Indian equity markets comes even as they face challenges including the underperformance of certain sectors such as IT. Investors will likely continue to monitor these developments closely as they navigate their investment strategies for October.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.