Biotech, pharma shares drop after Trump says ‘drug prices are out of control’

Evan Vucci | AP

President Donald Trump speaks during a cabinet meeting at the White House, Monday, Oct. 16, 2017, in Washington.

President Donald Trump is criticizing high drug prices again, sending health-care stocks lower Monday.

The iShares Nasdaq Biotech ETF erased its gains for the day after Trump’s comments, which were released around 11:50 a.m. EDT.

iShares Nasdaq Biotech ETF intraday chart

Source: FactSet

Pharmaceutical company shares such as Pfizer, Merck and Eli Lilly also dropped slightly after the remarks.

“Prescription drug prices are out of control,” Trump said in a Cabinet meeting on Monday. “The drug prices have gone through the roof.”

“You look at the same exact drug by the same exact company, made in the same exact box and sold some place else, sometimes it’s a fraction of what we pay in this country. Meaning as usual the world is taking advantage of the United States.”

Trump said American consumers are paying multiples of what other countries are paying for the same drugs.

“The drug companies frankly are getting away with murder. We want to bring our prices down to what other countries are paying,” he added.

This isn’t the first time Trump has commented on drug prices. He promised in March he would bring pricing down.

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The iShares Nasdaq Biotech ETF is up 27 percent through midday Monday this year compared with the S&P 500’s 14 percent return.