Market Impact: Vaccine Stocks Tumble Following Trump's RFK Jr. HHS Nomination
Pharmaceutical stocks experienced significant declines after President-elect Trump named Robert F. Kennedy Jr. as his choice to lead the Department of Health and Human Services. Major vaccine manufacturers including Pfizer, Moderna, and European counterparts saw their shares drop as markets responded to the appointment of Kennedy, known for his critical stance on vaccines and pharmaceutical industry practices.
Following President-elect Donald Trump's selection of Robert F. Kennedy Jr. as head of the Department of Health and Human Services (HHS), vaccine manufacturer stocks experienced notable declines during Friday's trading session.
Major pharmaceutical companies saw significant market impacts, with Pfizer shares declining 4 percent and Moderna dropping approximately 7 percent. Both companies are key producers of widely-used vaccines, including mRNA-based COVID-19 shots. Novavax experienced a more modest decline of about 1.6 percent in the same timeframe.
European pharmaceutical stocks also felt the impact, with Bavarian Nordic, producer of the mpox vaccine, experiencing a sharp 15 percent decline. Industry giants GSK and AstraZeneca saw declines exceeding 2 percent. While AstraZeneca's COVID-19 vaccine is widely distributed globally, it never received U.S. regulatory approval.
Kennedy, commonly referred to as RFK Jr., has indicated plans for substantial reforms at HHS, particularly regarding food and drug regulation. His agenda includes significant changes to scientific research methodologies and federal research funding structures.
In a recent development following Trump's victory this month, Kennedy took to social platform X to warn FDA staff members about impending changes, while also expressing his intention to replace 600 National Institutes of Health (NIH) employees with new personnel at the vaccine research oversight agency.
"If vaccines are working for somebody, I'm not going to take them away. People ought to have choice, and that choice ought to be informed by the best information," Kennedy stated on Nov. 6, following Trump's victory. "So I'm going to make sure scientific safety studies and efficacy are out there, and people can make individual assessments about whether that product is going to be good for them."
Beyond vaccine oversight, Kennedy has expressed strong concerns about FDA food regulation, particularly regarding products marketed to children. His endorsement of Trump came with the introduction of the campaign slogan "Make America Healthy Again" (MAHA).
Kennedy's reputation for challenging pharmaceutical and corporate interests stems from his background as an environmental attorney, where he successfully litigated against major corporations including Monsanto and DuPont. His appointment's market impact extended to these sectors, with Bayer (Monsanto's parent company) and DuPont each experiencing roughly 1 percent declines.
"We have a generational opportunity to bring together the greatest minds in science, medicine, industry, and government to put an end to the chronic disease epidemic," Kennedy declared in his Thursday statement following Trump's announcement.
Kennedy's political journey included an initial Democratic primary challenge against President Joe Biden, followed by an independent campaign, which he ultimately suspended to endorse Trump. The former president has consistently praised Kennedy and promised him significant influence in a future administration.
The appointment has faced strong opposition from medical and scientific organizations. Dr. Peter Lurie, president of the Center for Science in the Public Interest, stated, "Robert F. Kennedy, Jr., is not remotely qualified for the role and should be nowhere near the science-based agencies that safeguard our nutrition, food safety, and health."
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