This post is intended for VFC's Stock House only. No re-publishings or re-postings are authorized.
AVNR: Nuedexta, a recently-approved treatment for pseudobulbar affect (PBA) developed by Avanir, has come under the attention of Congress for the product's price, which according to Congress, looks a bit too high.
While Congress likely does not have the firepower to pressure the company to alter its pricing scheme at the current time, this could just be a hint of what games Washington will play once the upcoming election season is over.
The last major assault on the American health care system is still being fought out in the courts, and a similar result is likely, in my opinion, if Washington starts trying to dictate the price of drugs.
Avanir rebounded nicely on Thursday after spiking - and then falling - during Wednesday's trading.
Keep an eye on the story, this one can have more implications than just the AVNR share price.
Disclosure: No Position.
