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Medicare Band-Aid Sends 1 Biotech Stock Surging

By Dave Williamson and Michael Douglass – Mar 30, 2014 at 7:00AM

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Keryx was the big winner in healthcare Thursday, up 17% in a single day due to both a successful drug and a success in Washington.

Shares of Keryx (KERX) got a boost on Thursday thanks to the decision-makers in the halls of Congress. The "Doc Fix" Medicare legislation, which just passed the House of Representatives, included language that exempts end-stage renal disease drugs from the reduced payment bundle until 2024, instead of 2016. This directly affects Keryx's lead drug candidate Zerenex, which removes extra phosphorous from patients on dialysis.

In this video from Thursday's Market Checkup, Motley Fool health-care analysts David Williamson and Michael Douglass dig into what the legislation means for the company, what the potential is for Zerenex, and what to watch for on June 7, when the FDA makes its approval decision.

David Williamson, Michael Douglass, and The Motley Fool have no position in any of the stocks mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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