Health care stocks were set to close mostly higher today after the White House today promised less regulation and more competition for drugmakers at a meeting today with industry executives. The NYSE Health Care Index added 1.0% in value today while shares of health care companies in the S&P 500 stretched out to a 1.4% gain as a group.
In company news, Psychemedics (PMD) lost almost 30% in value Tuesday after attorneys representing a U.S. rival said the forensic hair drug testing company may be on the hook for a seven-figure fine after Psychemedics’s Brazilian partner was cited for anticompetitive practices aiming to keep the other company out of the South American nation.
The 23rd Civil Court of Brasilia Jan. 20 ordered Psychemedics Brazil to indemnify Omega Laboratories Inc USA for lost profits and other damages after reviewing and upholding the termination of an exclusivity agreement between the companies, according to the Figueira Hong law firm, which represented Omega Labs in the Brazilian court. The attorneys did not specify how much Psychemedics owes but today asserted it could be in the “millions of dollars.”