Biotech stocks drop after Trump promises to ‘bring down drug prices’

NEW YORK — Biotech stocks closed largely down on Tuesday, following a day of trading that began with a 2.5% drop in the SPDR S&P Biotech XBI index. The XBI closed down 4.02% and iShares Nasdaq Biotechnology ETF IBB closed down 2.94%. This is as the S&P closed up 1.32% and the Nasdaq closed up 1.14%. 

 

The slump in stocks came in the aftermath of comments made by President-elect Donald Trump to Time, who published an interview with Trump Tuesday morning to accompany him being named the magazine's "Person of the Year" in which he said one of his goals as president is lowering the cost of prescription drugs.  

 

“I’m going to bring down drug prices,” Trump told Time. “I don’t like what has happened with drug prices.”

 

Biotech and pharma stocks dominated the lists of companies with the biggest losses Tuesday.