Drug stocks fell suddenly on Thursday on the back of a report that President Donald Trump was ready to issue an executive order aimed at lowering drug prices.
The iShares Nasdaq Biotechnology ETF (IBB) hit session lows to trade 1.3 percent lower after Bloomberg reported, citing people familiar with the matter, that the administration could move on the matter within weeks.
The White House had no comment on the report.
Drug pricing has been a key issue for Trump as his administration tries to repeal and replace Obamacare. Earlier this year, the IBB tumbled after Trump teased in a tweet that drug prices would be coming “way down.”
IBB intraday chart
Source: FactSet
—CNBC’s Eamon Javers contributed to this report.