Trading the drug price controversy hitting biotech

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Indexes representing the biotech and health-care sectors are down 15 percent and 7 percent, respectively, compared to an S&P 500 off 3 percent since the news was released Sept. 21 that Hillary Clinton plans to regulate drug pricing.

Investors are wondering which health-care and biotech names are most at risk from potential drug pricing regulation. Or at the very least, the companies that could come under scrutiny from both parties in Congress over the practice of extreme price increases on older or rare drugs.

Morgan Stanley analyzed the issue and found the companies that were the best and worst positioned in a note sent to clients Thursday.