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Hillary Clinton won't dampen pharma sector: Analyst

Despite a drop in biotech stocks this week after political talk about price gouging, an analyst said Wednesday that the sector remains a good investment.

"Biotech and even specialty pharmaceuticals is still a stock picker's paradise," Corey Davis of Canaccord Genuity told CNBC's "Power Lunch."

The iShares Nasdaq Biotechnology ETF (IBB) took a hit Monday when when Democratic presidential hopeful Hillary Clinton tweeted out the following:

Price gouging has come to the forefront of news this week with commentary from Clinton as well as the controversy surrounding the drug Daraprim.

Davis attributes most of the downtick in the stocks to Clinton's tweet and subsequent rhetoric.

"It makes for great political rhetoric but at the end of the day, I don't think that any of these proposals are anything new or dramatic," he said about Clinton's proposed legislation. "I just don't think at the end of they day they're going pass and even if they do they're not going to have a material effect on the biopharm industry."

His top stock pick in the sector is Pacira Pharmaceuticals because, "it's been unduly beaten up and it's got a drug on the market and it's going to rebound nicely soon."

Disclosures: Neither Davis nor Canaccord Genuity own shares of Pacira Pharmaceuticals.

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