Biotechnology stocks and sector-related exchange traded funds retreated Tuesday after President-elect Donald Trump vowed to “bring down drug prices.”
The iShares Nasdaq Biotechnology ETF (NasdaqGM: IBB), the largest biotech ETF by assets, declined 3.3% Tuesday, falling back below its long-term, 200-day simple moving average.
IBB has rebounded 9.0% over the past month after Trump won the presidential election on speculation that he would not focus on the rising drug prices in the healthcare sector, but the hopes were quickly dashed on Tuesday.
“I’m going to bring down drug prices. I don’t like what’s happened with drug prices,” Trump said, according to a transcript of an interview posted on Time’s website.
During the presidential campaigns, biotechnology and pharmaceutical companies like EpiPen allergy shot maker Mylan NV and Valeant Pharmaceuticals International have come under fire over their high drug prices, following Hillary Clinton’s censures.