Wake up to Mike Allen’s AM, the 10 stories driving your day

Stories

Biotech investments are declining under Trump

Biotech investments and acquisitions have been declining this year, Bloomberg found, as investors are weary of Trump's ability to foster a biotech boom.

The stats: Compared to three years ago, exchange-traded funds have lost nearly half of its trading volume, per Bloomberg. Moreover, Bloomberg noted that these acquisitions — pharmaceutical and biotech — are down 13 percent this year, totaling $44 billion last quarter.

The Trump effect: Biotech investors and companies are standing by to see what relevant issues Trump's administration will move forward on, such as tax reform and the eventual Obamacare replacement, before they feel confident in investing more in the industry.

QuoteWhen there is a little bit more clarity on some of the policy issues we could probably see an uptick in M&A.—Jeff Greene, partner at Ernst & Young

The big questions: Will there be more dealmaking when the Obamacare repeal effort is resolved one way or another, or when Scott Gottlieb is confirmed as the next FDA commissioner? Or will it get worse if Trump keeps talking about drug prices?

More stories loading.