The healthcare sector was trading with significant losses on Wednesday afternoon, specifically for biotech and pharmaceutical stocks, as comments from President-elect Donald Trump at Wednesday’s press conference alluded to the possibility for more regulation in the industry.
The healthcare sector of the S&P 500 was down 1.66% with drugmakers taking the brunt of the feeding frenzy. Shares of Biogen (BIIB), AbbVie (ABBV) and Bristol-Myers Squibb (BMY) were some of the biggest losers, with selling pressure spilling over into Dow component stocks Pfizer (PFE) and Johnson and Johnson (JNJ).
Trump kicked off his first press conference since the Nov. 8 Election Day by taking drug makers to task for their anti-competitive practices.
“They are getting away with murder,” Trump said, adding that “Pharma has a lot of lobbyists and a lot of power and there is very little bidding.” Trump believes more competitive bidding will save the government “billions” in drug costs.
By Fred Canto