Here's Why a Trump Administration Should Boost the Biotech Sector

The biotechnology sector has been one of the most-talked-about groups following Donald Trump's victory in the presidential election.

The sector is emerging from its recent bear market, which was in part sparked by comments made last year by former Senator, Secretary of State and Democratic presidential nominee Hillary Clinton, who was favored to beat Trump.

Last year, she tweeted about biotech and pharmaceutical companies for their "price-gouging" activities.

And Clinton tweeted this year about Mylan for its "outrageous" pricing of its EpiPen to treat asthma attacks and allergic reactions.

For the year ended June 30, the iShares Nasdaq Biotechnology Exchange-Traded Fund, one of the most widely followed and traded biotech ETFs, fell more than 30%, as shown in the chart below.

Chart courtesy of TradingView

However, the ETF began to regain some of its losses. For the year ended Oct. 31, the ETF regained just under 9% and was down 21.18%, as shown in the chart below.

Chart courtesy of TradingView

But now that Trump will assume office in January, the biotech sector doesn't have a lot of political risk.

Clinton's loss removed fears that the industry will be heavily regulated, and he is all about limiting regulations for many industries. Trump also didn't make the industry's price gouging a large issue in his campaign.

Moreover, biotechnology companies are seen by many as benefiting from an uptick in industry mergers and acquisitions, Fortune reported.

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