Bavaria
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- Jun 14, 2011
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Biotechnology stocks took a sharp dive Monday after Hillary Clinton said she would propose a plan to counteract "price gouging" by drug makers.
Ms. Clinton, who is seeking the Democratic nomination for president, was responding to New York Times article published Sunday that told of a price increase for a drug used to treat a life-threatening parasitic infection. The cost of the drug was recently increase from $13.50 a tablet to $750, the story said.
Ms. Clinton published her tweet at 10:56 a.m. East Coast time. Then this happened:
That's a view of the iShares Nasdaq Biotechnology ETF IBB -4.57%, which tracks the Nasdaq Biotechnology Index. Trading activity in the ETF jumped sharply in the moments after Ms. Clinton's tweet went out, and then the price started falling to reflect the movement in the underlying stocks. As Ms. Clinton's pronouncement began to make the rounds and reach a wider audience, volume in the ETF climbed again around noon.
Some of the biggest components of the index, including Biogen Inc.BIIB -5.89%, Celgene Corp.CELG -2.92% and Illumina Inc.ILMN -4.16%, were all down more than 4% in recent trading. Some smaller components were down by twice as much.
That said, it doesn't take much to rattle biotech stocks these days. They've enjoyed a massive run up over the past few years, with the Nasdaq biotech ETF rising about 70% in the past two years before Monday. Investors - and our colleagues elsewhere at the Journal - have been raising concerns about valuations in the biotech sector for months.
Amid the market turmoil in August, biotech took stocks it on the chin worse than most, a sign of how nervous investors have become.
Now, investors will be waiting to see exactly what Ms. Clinton unveils tomorrow.
Hillary Clinton Tweet Sends Biotech Stocks Tumbling - MoneyBeat - WSJ
Ms. Clinton, who is seeking the Democratic nomination for president, was responding to New York Times article published Sunday that told of a price increase for a drug used to treat a life-threatening parasitic infection. The cost of the drug was recently increase from $13.50 a tablet to $750, the story said.
Ms. Clinton published her tweet at 10:56 a.m. East Coast time. Then this happened:
That's a view of the iShares Nasdaq Biotechnology ETF IBB -4.57%, which tracks the Nasdaq Biotechnology Index. Trading activity in the ETF jumped sharply in the moments after Ms. Clinton's tweet went out, and then the price started falling to reflect the movement in the underlying stocks. As Ms. Clinton's pronouncement began to make the rounds and reach a wider audience, volume in the ETF climbed again around noon.
Some of the biggest components of the index, including Biogen Inc.BIIB -5.89%, Celgene Corp.CELG -2.92% and Illumina Inc.ILMN -4.16%, were all down more than 4% in recent trading. Some smaller components were down by twice as much.
That said, it doesn't take much to rattle biotech stocks these days. They've enjoyed a massive run up over the past few years, with the Nasdaq biotech ETF rising about 70% in the past two years before Monday. Investors - and our colleagues elsewhere at the Journal - have been raising concerns about valuations in the biotech sector for months.
Amid the market turmoil in August, biotech took stocks it on the chin worse than most, a sign of how nervous investors have become.
Now, investors will be waiting to see exactly what Ms. Clinton unveils tomorrow.
Hillary Clinton Tweet Sends Biotech Stocks Tumbling - MoneyBeat - WSJ
Hillary Clinton ✔ 
