Biotech and drugs stocks are soaring Tuesday after President Donald Trump, meeting with CEOs of the biotech and pharma industries, promised to "streamline the FDA" and cut regulations so that new products can be brought to the market faster and cheaper.
But Trump also wants drug prices lowered through more competitive bidding. He vowed to take on "price fixing by the biggest dog in the market, Medicare."
The industry-tracking exchange-traded funds, the iShares Nasdaq Biotechnology ETF (IBB) and the SPDR S&P Biotech ETF (XBI) , rose 2% and 2.5%, respectively, following Trump's remarks at the start of his meeting with drug company executives.
Here are some of Trump's comments from the meeting:
"We don't make the drugs in our country anymore. A lot of that has to do with regulation. A lot of that has to do with other countries taking advantage with their money and their money supply. And devaluation. Our country has been run so badly. We know nothing about devaluation..."
"You have to get your companies back here. We have to make products back. We're going to get rid of a tremendous number of regulations. I know you have some problems where you cannot even open up new plants. You can get approval to open the plants and then you can't get approval to make the drug. Other than that you're doing fantastic."