Drugs Bring on Paranoia

The stock market is up slightly in response to election results, but drug company investors are freaking out. The simple, semi-paranoid explanation is that Dems are more likely to force lower drug prices with soft price caps, demands for cheap generics, and permission for more importation from Canada. This means lower profits in the short term, less R&D in the long term.

Stolen, intact, from Greg Mankiw.