it is an unusual day when biotech becomes the market<u+2019>s safe haven. <u+00a0>it is far from clear that the good times will last. such was the case on wednesday morning. the ishares nasdaq biotechnology index exchange-traded fund traded 8% higher. as the election couldn<u+2019>t have gone better for health-care investors, a relief rally was in order. donald trump <u+2019>s surprise victory was part of the reason for the green shoot. hillary clinton had repeatedly vowed to curb the high prices of some prescription drugs, for instance. with republicans in control of congress and mrs. clinton out of the picture, the <u+00a0>probability of that outcome has diminished. meanwhile, proposition 61, a california ballot measure that would have introduced new drug price regulation, apparently failed to pass in another clear positive for drug stocks. however, plenty of uncertainty remains about the direction of health-care policy.<u+00a0>mr. trump has <u+00a0>called for an immediate repeal of the affordable care act, without presenting a clear idea of what his alternate policy would entail. hospital stocks plunged in the wake of the republican<u+00a0> victory<u+2014>hca holdings opened 15% lower, for instance. pharma insiders, meanwhile, are in the dark as to the nature of mr. trump<u+2019>s polices, an unusual occurrence after a political campaign. and some of mr. trump<u+2019>s broader policy expressions don<u+2019>t necessarily bode well for the sector. he has said, for instance, that medicare should be able to negotiate drug prices. meanwhile, ongoing federal investigations continue to focus on pricing practices in the health-care industry. and a trump win won<u+2019>t cure some fundamental factors that have helped drive a wretched year for health-care stocks. third-quarter earnings were a comprehensive disappointment across the industry, amid signs that pharma<u+2019>s vaunted pricing power has lately slipped. meanwhile, breakthrough new therapies of major economic consequence have lately been scant. those are problems that victories in washington can<u+2019>t solve alone. write to charley grant at charles.grant@wsj.com
pharma<u+2019>s big election win could be fleeting - wsj
charley grant