Why Pharma and Biotech Stocks Got Thrashed on Tuesday
As ever in the often quick-developing biotech and pharmaceutical sectors on Tuesday, companies posted a mix of positive and negative news. Investors clearly took the latter more to heart, as they traded down a wide variety of stocks in both fields. Hanging over these industries were very recent remarks by President Trump concerning potential tariffs that will surely impact them.Few well-known biotech and pharma names escaped what ended up being something of a rout. Amgen (NASDAQ: AMGN) took it on the chin with a more than 2% decline on the day, while Regeneron Pharmaceuticals (NASDAQ: REGN) and Merck (NYSE: MRK) both fell in excess of 4%. Axsome Therapeutics (NASDAQ: AXSM) was looking sickly, meanwhile, with a nearly 7% drop.Investors continued to be worried about Trump's remarks, which took place at the latest meeting of his cabinet on Monday. Among the president's controversial tariffs, which, after a reprieve, look set to start being implemented next Wednesday, are levies that specifically target medicine makers. Continue reading
As ever in the often quick-developing biotech and pharmaceutical sectors on Tuesday, companies posted a mix of positive and negative news. Investors clearly took the latter more to heart, as they traded down a wide variety of stocks in both fields. Hanging over these industries were very recent remarks by President Trump concerning potential tariffs that will surely impact them.
Few well-known biotech and pharma names escaped what ended up being something of a rout. Amgen (NASDAQ: AMGN) took it on the chin with a more than 2% decline on the day, while Regeneron Pharmaceuticals (NASDAQ: REGN) and Merck (NYSE: MRK) both fell in excess of 4%. Axsome Therapeutics (NASDAQ: AXSM) was looking sickly, meanwhile, with a nearly 7% drop.
Investors continued to be worried about Trump's remarks, which took place at the latest meeting of his cabinet on Monday. Among the president's controversial tariffs, which, after a reprieve, look set to start being implemented next Wednesday, are levies that specifically target medicine makers.
