Six Degrees of PerspectiveMay 11, 2018
In the 1978 John Landis classic, Animal House, Kevin Bacon’s character Chip Diller fails miserably at crowd control while the Deltas run roughshod over Faber College’s Homecoming parade.
Perspective is a funny thing. Its often hard to see the forest for the trees but this is particularly important in financial analysis. Properly maintained, perspective can provide fantastic entry points and opportunities for upside during moments of dislocation. After suffering through what Nephron’s Eric Percher aptly described as “the indignities of the earnings season” in the drug supply chain, we’ve had a week where the E&C Subcommittee on Opioids took its pound of flesh and we got additional rhetoric from the Rose Garden.
So where to find this perspective? At Nephron, we take comfort in the sweet embrace of a well-constructed analysis and view our body of work this week as somewhat reassuring:
- In our Nephron Pharma Price Auditor (April), released this week, we show that Gx deflation continues to moderate.
- From our first look at The American Patients First Drug Pricing Blueprint on Friday: Details were actually POSITIVE for the supply chain and a RELIEF for insurers (on first read). Perhaps reality does not match the fear.
In the end maybe Chip Diller had it right: Remain calm….all is well!!!!
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