Pharma and biotech stocks started 2017 on a strong note with this part of the market remaining in favor as the year progresses. So far this year, the Nasdaq Biotechnology Index and the NYSE ARCA Pharmaceutical Index are up 25.6% and 14.6%, respectively.
With investors being more comfortable with the drug pricing scenario, focus has shifted to the fundamentals of the sector. Although the drug pricing issue will remain a headwind, expectations are that steps taken by the Trump administration to drive down drug prices will not be as draconian as previously expected.
