Following the initial rise of biotech and pharmaceutical stocks after the election, President-elect Donald Trump told Time he would take aim at rising drug prices.
Mr. Trump's comments on his plans to address drug prices were part of an interview with Time after he was named the publication's "2016 Person of the Year."
Although Mr. Trump occasionally commented on the issue during the campaign, pharma stocks jumped in the days following the election based on the expectation that the incoming president and Republican-dominated Congress wouldn't prioritize action on drug prices, according to The Wall Street Journal.
However, the honeymoon was short-lived. The SPDR S&P Biotech ETF rose 18 percent in the four days after the election but fell 9.3 percent since then.
Mr. Trump suggested in the Time interview that some stock analysts may have misread his intentions during the campaign. "I'm going to bring down drug prices," he told Time. "I don't like what has happened with drug prices."
Shares of biotech and pharmaceutical companies fell in the wake of Mr. Trump's comments to Time, according to The Wall Street Journal. Pfizer, Johnson & Johnson and Merck & Co. were the only three companies in the 30-member Dow Jones Industrial Average to dip, though each stock recovered from early-day declines. The $2.8 billion SPDR S&P Biotech exchange-traded fund, which tracks stocks including Celgene Corp. and Biogen, fell 4 percent, according to the report.