The iShares Nasdaq Biotechnology ETF (NASDAQ:IBB), which tracks the Nasdaq Biotechnology Index (NASDAQ:NBI), has pulled back sharply since the beginning of March, while the broader market continues to rally off the February low, despite that the fundamentals of the biotech sector still look strong. According to FactSet, the Biotechnology sector is projected to report double-digit revenue growth for the first quarter 2016, one of the highest sales growth forecasts among the S&P 500 sectors.
High prescription drug costs have been a hot-button issue in both Democratic and Republican presidential primary campaigns since September 21, when Hillary Clinton sent out a tweet about “outrageous” price gouging by a pharmaceutical CEO. Based upon investors’ reactions, remarks from presidential candidates during their stump speeches and debates continue to be a dark cloud over the sector.
