NEW YORK- Shares of U.S. pharmaceutical and biotechnology companies tumbled after President-elect Donald Trump said he would “bring down drug prices.”
In a cover article for Time magazine, which named Trumpas Person of the Year, he said “I don’t like what has happened with drug prices.”
Investors initially hailed Trump’s victory as a boon for drug and biotech stocks, with the Nasdaq Biotech Index up as much as 12 percent in the two days after the Nov. 8 election.
Investors were relieved that Trump’s rival, Democrat Hillary Clinton, who had been critical of rising drug prices during the campaign, had not won the White House.
However, the index has fallen in three of the past four weeks and is down about 10 percent from its recent peak. The index fell 3.5 percent to its lowest since Nov. 8.
The NYSE Arca Pharmaceutical index of U.S. and European drug-makers fell 2 percent to a three-year low.
Among the biggest large-cap decliners, Celgene Corp dropped 4.8 percent and AbbVie fell 4.5 percent.