Opioid legislation could lift certain hospital operators, drugmakers
New opioid legislation, which many expect will pass Congress by the end of the year, should benefit certain behavioral health providers and drugmakers, Height Capital Markets analyst Andrea Harris said on Wednesday. Among other provisions, the legislation would allow states more federal funding for substance use disorder services over the next four years. Though which states may end up participating will depend on several factors, some of the likely contenders would provide either high or modest benefit for Acadia Healthcare Co. Inc. and/or Universal Health Services Inc. , which own behavioral health facilities, with potential areas including Colorado, Connecticut, D.C., Ohio and Missouri, Harris said. The measure, which has bipartisan and bicameral support, additionally aims to increase access to medications for opioid addiction, which could lift drugmakers like Teva Pharmaceutical Industries Ltd. , Mallinckrodt PLC and Alkermes PLC , Harris said; the legislation is also “slightly negative” for Centene , Molina and WellCare , and excludes a provision that might have helped Heron Therapeutics . The S&P 500 has risen 7.3% over the last three months and the Dow Jones Industrial Average has lifted 9.3%.
Source : MTV
