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Monday, Sep 28 2015

Full Issue

Health Care Stocks Tumble, Lead Overall Market Drop

Among the losses are drugmakers' stocks, after Democratic presidential hopeful Hillary Clinton proposed reining in drug prices. In the meantime, a unit of Johnson & Johnson accuses a company that finances hip surgeries of price gouging.

A late slump in health care stocks pushed the market to its third weekly loss this month. ... Shares of drug makers began their slide Monday when Democratic presidential front-runner Hillary Rodham Clinton pledged to stop "price gouging" in the industry. The healthcare sector, a longtime favorite of investors, ended Friday with its worst weekly performance in more than four years. Biotechnology shares in the S&P 500 plunged during the week, pushing the overall healthcare index down 5.8%, its worst week since August 2011. Vertex Pharmaceuticals, which focuses on developing drugs for cystic fibrosis and viral infections, was the biggest decliner in the index Friday, dropping $7.83, or 7%, to $103.20. (9/25)

A unit of Johnson & Johnson that makes artificial hips has accused a surgical funding company of seeking excessive profits from financing surgery for patients suing over the devices. The claim by DePuy Orthopaedics marks the first time that a device maker in the multibillion-dollar litigation over faulty hip replacements has publicly raised concerns about the controversial business of surgical funding, which has increasingly become a part of mass litigation over medical devices. (9/28)

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