Shares in vaccine manufacturers and healthcare companies experienced a sharp decline on Friday following news that Robert F. Kennedy Jr., a vocal vaccine skeptic, has been chosen by former President Donald Trump as his pick for US Health Secretary. Kennedy’s stance against “Big Pharma” has raised concerns about potential regulatory changes, sparking uncertainty across the sector.
In early trading, shares in major US vaccine makers Pfizer and Moderna fell by more than 5%, while UK-listed firms AstraZeneca and GSK saw declines of 2% or more. The market reaction reflects investor apprehension about the potential impact of Kennedy’s appointment on the pharmaceutical industry.
Russ Mould, investment director at AJ Bell, commented that Kennedy’s selection had “spooked” shareholders, with many questioning how the new administration would pursue its threats to reform the healthcare sector. He added, “The impact on the sector is hard to judge fully at this stage, but, at the very least, it will cause a good deal of uncertainty.”
The US Health Secretary oversees a massive agency responsible for food safety, medical research, and welfare programs, making the position highly influential in shaping healthcare policies. Kennedy, known for his controversial stance on vaccines, has faced significant criticism from public health officials who accuse him of spreading misinformation. However, he has garnered support from those who distrust regulatory bodies, arguing that they are too lenient on powerful food and drug companies.
Kennedy’s appointment would represent a stark shift in policy, moving away from the approach of both the Biden administration and Trump’s first term. During his first presidency, Trump’s government facilitated the rapid development of COVID-19 vaccines and generally took a hands-off approach to regulation. However, Trump’s push to lower drug prices, including making it easier to import medicine from Canada, had already raised alarms within the industry.
The news of Kennedy’s nomination reverberated across global markets. In Europe, shares of Novo Nordisk, the maker of the diabetes drug Ozempic, saw a drop of more than 4%, while French pharmaceutical giant Sanofi’s stock fell over 3%. In London, GSK’s shares slid about 4%, and AstraZeneca dropped around 2.6%.
In response to the news, Steve Ubl, president of the US trade association for pharmaceutical manufacturers, defended the industry’s contributions to public health, highlighting its successes in fighting diseases like polio and smallpox. While not directly addressing Kennedy, Ubl emphasized the importance of working with the Trump administration to strengthen innovation and make healthcare more affordable.
As the Senate prepares to consider Kennedy’s nomination, the healthcare industry remains on edge, uncertain about the potential regulatory changes his appointment could bring.
