This one Hillary Clinton tweet caused biotech stocks to plunge

This one Hillary Clinton tweet caused biotech stocks to plunge
Credit: Reuters

The pen, it is said, is mightier than the sword. So apparently is the 140-character-maximum message known in the world of social media as the tweet.

Yesterday morning, 2016 presidential hopeful Hillary Clinton took to Twitter to address what she insisted was “price gouging” in the prescription drug industry. By the close of trading, biotech stocks had taken a 4.7% tumble — the worst day the Nasdaq Biotechnology ETF has seen since 2014.

After the New York Times reported the price for antiparasitic drug Daraprim surged from $13.50 to $750 overnight, the former secretary of state decided to take to social media to address the 5,000 percent increase. Linking to the Times article, former first lady tweeted:

Turing Pharmaceutical CEO Martin Shkreli stood by the company’s decision to increase the cost of the drug, which is used mainly to fight parasitic infections in people with lowered immune systems, citing administrative and regulatory expenses as the reason for the sharp increase.

“This drug saves your life for $50,000,” he told Bloomberg. “It is still a bargain for health insurers. At this price, it is a no-brainer.”

Over the past two years, biotech stocks have increased by nearly 70% and have been considered one of the safer investments in the market.

This report, by Juliegrace Brufke, was cross-posted by arrangement with the Daily Caller News Foundation.

LU Staff

LU Staff

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