Biotech stocks tanked Wednesday on little more than a two-sentence comment from President-elect Donald Trump.
In an interview with Time Magazine for the "Person of the Year" cover story, Trump said, "I'm going to bring down drug prices. I don't like what has happened with drug prices."
Both the Nasdaq Biotech ETF (IBB) and S&P Biotech ETF (XBI) fell about 4% Wednesday on this statement alone.
Trump has yet to provide any detail on how he will lower drug prices. He has, instead, given lip service to those in opposition of drug and biotech companies, without much specificity on how he intends to do so.
And yet, his words move share prices, often by more than a few bucks apiece.
Some of the biggest movers in biotech included Bluebird Bio (BLUE) , which fell 10.3% to $70.80 per share, and Acceleron Pharma (XLRN) , which fell 8.15% to $31.21 per share Wednesday. Aduro Biotech (ADRO) fell 9.2% to $10.80 per share Wednesday, while Blueprint Medicines (BPMC) fell 7.1% to $26.40 per share.
What's interesting is that when Trump was elected, biotech stocks saw a 9% boost. Democratic candidate Hillary Clinton had railed against drug prices leading up to the election, so the fact that she would not be in office was seen as a boon to the industry.
But with one comment, Trump was able to turn the tide of the stock market, and biotechs took a hit. Comments Trump made about Air Force One maker Boeing (BA) also sent that stock spiraling Tuesday.
