Pharma Stocks Drop After Trump Tweets Drug Prices Will 'Come Way Down!' (IBB)

Biotech stocks were pressured Tuesday morning after President Trump said he is working on a plan to reduce drug prices. Trump has in the past discussed the need to bring drug costs down, but his tweet on the topic today mentioned a "new system" to create competition, which may have spooked some biotech investors.

Trump tweeted, "I am working on a new system where there will be competition in the Drug Industry. Pricing for the American people will come way down!

The tweet didn't include further details about the new system, adding to uncertainty.

In January Trump accused the pharma industry of "getting away with murder" and pledged to make changes. He later expressed support for Medicare drug price negotiations.

The Nasdaq biotech index and its related ETF (Nasdaq: IBB) declined one percent prior to the market open, while popular names like Celgene (NASDAQ: CELG), Gilead Sciences (NASDAQ: GILD), Amgen (NASDAQ: AMGN), Eli Lilly & Co. (NYSE: LLY), and Merck (NYSE: MRK) came under pressure.

(Updated at 9:10; 9:30 AM)

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