Healthcare Stocks Decline as US Treasury Drafts Rules on Chinese Drug Development

The healthcare sector saw a decline on Friday afternoon, with the NYSE Healthcare Index decreasing by 0.5% and the State Street Health Care Select Sector SPDR ETF (XLV) down 0.4%. The iShares Biotechnology ETF (IBB) fell by 1.1%

Pfizer (PFE) shares were also impacted, dropping 0.5%, due to its involvement in discussions with the Trump administration regarding restrictions on investments in Chinese drug development.

The US Treasury Department is drafting rules that would allow pharmaceutical companies to enter into licensing agreements for Chinese drugs not involving pathogens or potential bio-weapons, according to Reuters.