Shares of health-care companies fell as traders retreated from risky niches, such as biotechnology. Mylan shares were flat after the drug maker agreed to pay $465 million to settle federal government claims that it overcharged the Medicaid program by millions of dollars for its EpiPen products. Analysts at brokerage Morgan Stanley recommended clients gain more exposure to managed-care companies than to hospital operators, given the backdrop of the current health-care system. "We expect managed-care organizations to continue to benefit from a favorable cost environment and strong balance sheets, while hospitals' structural concerns with volumes and reimbursement mix continue to weigh on results," said the Morgan Stanley analysts, in a note to clients.
Continue Reading Below
-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
August 17, 2017 16:38 ET (20:38 GMT)