Shares of vaccine makers and health care companies around the world fell sharply on Friday, as investors warned that Donald Trump's choice of Robert F. Kennedy Jr. as U.S. health secretary could pose challenges. new challenges to the sector.
Kennedy is known as a vaccine skeptic and, if confirmed in his message, has vowed to use it to crack down on “Big Pharma.”
The news sparked a sell-off across the industry. In the United States, shares of Pfizer and Moderna fell more than 5% in early trading, while UK-listed companies AstraZeneca and GSK fell 2% or more.
Russ Mould, investment director at AJ Bell, said the choice had “scared” shareholders, despite questions about how the new administration might follow through on its threats.
“The impact on the sector is difficult to fully assess at this stage but, at the very least, it will cause a lot of uncertainty,” he said.
The U.S. health secretary heads a massive agency that oversees everything from food safety to medical research and social programs.
Critics of Kennedy, commonly known by his initials RFK Jr, include many public health officials, who have denounced his record of disseminating health information that scientists say is false.
But the former environmental lawyer has gained traction by exploiting distrust of those who view U.S. regulators as too deferential to big food and medical companies.
Before supporting Trump, Kennedy himself had unsuccessfully attempted to win the presidency as a third-party candidate. The campaign has highlighted calls for increased restrictions on food chemicals and dyes, removing ultra-processed foods from school meals and requiring pharmaceutical companies to share more information about vaccines.
If his nomination is ratified by the Senate and he is empowered to follow through on his promises, it would mark a change in approach, not only from the Biden administration but also from Trump's first term, which saw the government invest money to help companies develop Covid vaccines. , while adopting a hands-off approach to regulation.
However, Trump has also alarmed the industry with his efforts to reduce drug prices, including making it easier to import drugs from Canada.
At the open Friday, shares of Pfizer and Moderna fell more than 5%, accelerating their fall after falling about 2% on Thursday.
In Europe, Denmark-listed shares of Ozempic maker Novo Nordisk were on course to close down more than 4%, while France's Sanofi, a leader in flu vaccines, saw its shares in Paris fall by more than 3%.
In London, GSK shares fell about 4% and AstraZeneca's shares fell about 2.6%.
Asked about the choice, Steve Ubl, president of the American Pharmaceutical Manufacturers Trade Association, defended the industry, highlighting its success in fighting diseases such as polio and smallpox and its major role in economy.
“We want to work with the Trump administration to further strengthen our innovation ecosystem and improve health care for patients,” he said in a statement, without mentioning Kennedy by name.
He called on policymakers to focus on fighting chronic diseases through prevention and reforming America's complex health care system to make medications more affordable.
