IBB, which holds nearly 190 stocks and is a cap-weighted ETF, has a price-to-earnings ratio of just over 21 and a price-to-book ratio of 4.92. The ETF’s three-year standard deviation is just over 25 percent. IBB is the largest biotech ETF by assets.
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.
While Trump was expected to be a proponent to free-market health care, drug company executives and observers warned that the new president could scrutinize prices as a populist issue.
“According to Ying Huang, a biotechnology analyst for Bank of America Merrill Lynch, a lowered corporate tax rate from an industry wide 20% to 15% and repatriation of funds will provide growth opportunities,” adds Seeking Alpha.
For more information on the biotech sector, visit our biotechnology category.