The major biotech ETF fell to its lows of the day after Democratic presidential hopeful Hillary Clinton said Monday she would take on “Price gouging” in the pharmaceutical industry.
The iShares Nasdaq Biotechnology ETF was trading down more than 4 percent by early afternoon, taking a visible leg down around the time of the 10:56 a.m.ET tweet by the presidential candidate.
The ETF is up 27 percent over the last 12 months, compared with a 2 percent decline for the S&P 500 over the same period.
Investors in the biotech sector often feel as though they are immune from the market lows, according Bradd Kern, managing director at Armored Wolf, which is short IBB.
“I do think there will be more days like today,” Kern said.
Shares of Retrophin, started by Martin Shkreli, traded down more than 11percent following Clinton’s tweet.
“If we can figure out a way to lower the cost of development and expedite the process of getting these things from the labs into the marketplace, I think that will result in better products, better services for more people, better drugs at lower costs.”