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After all that lobbying, drug companies can breathe a sigh of relief

Donald Trump speaks at a caucus night watch party at the Treasure Island Hotel & Casino on February 23, 2016, in Las Vegas, Nevada.
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The political pressure on drug stocks has faded with Donald Trump's election win and voter rejection of a California ballot initiative on pricing.

Major pharmaceutical companies had spent at least $109 million to urge voters to say "no" to Prop 61 in California, which could have reduced prices for some drugs but potentially limited their availability. As of Wednesday morning, with 100.0 percent of precincts partially reporting, the vote was 53.7 percent against the proposal and 46.3 percent in favor, according to California's Secretary of State.

"Irrespective of your political leanings, this is unambiguously the most positive scenario a biotech investor could ask for," said Paul Yook, portfolio manager at BioShares Funds.

"I think we could be back to growth mode. ... Pullbacks will be bought," he said.