President-elect Trump's Biotech Comments Sharply Lower Biotech ETFs
SPDR S&P Biotech ETF XBI slumped 1.9% and iShares NASDAQ Biotech ETF IBB sunk 1.8% in pre-market trade on Wednesday after President-elect Donald Trump's Time cover story quoted the celebrity businessman saying "I'm going to bring down drug prices. I don't like what has happened with drug prices." Biotech has experienced an unprecedented rally over the last month on investors' relief at former Democratic presidential candidate Hillary Clinton's loss. Clinton had repeatedly called for regulation of the pharmaceutical industry. XBI rose 12.3% over the last month, and IBB rose 5%, compared with a 3.8% rise in the S&P 500 . "Everybody" was cautious about biotech investments before the election, Andrew McDonald, co-portfolio manager of biotech ETFs BBC and BBP , told MarketWatch in mid-November. But now, "it's just getting started. Most people aren't sure this is real...but we've just taken 90% of the risks in the sector away."
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