Many biotechnology companies have been shifting away from blockbuster drugs and developing more specialty drugs to treat specific diseases. The specialty drugs have also come with a higher price tag.
Investors who are closely watching the presidential race will want to keep an eye on Clinton in the coming months. If Clinton makes her way to the Oval Office and implements more regulation on pharmaceutical drug pricing, biotech companies may underperform the broader market.
Some market observers still see the potential for out-performance with biotech stocks and ETFs this year.
“According to Max Wolff, chief economist at Manhattan Venture Partners, biotech stocks will likely outperform as the broader market remains weak this year. The defensive rotation into health care may provide a boost to biotech, he said,” reports CNBC.
iShares Nasdaq Biotechnology ETF
