Pharmaceutical stocks saw a notable dip on Friday following President-elect Donald Trump’s controversial decision to nominate vaccine skeptic Robert F. Kennedy Jr. as the head of the Department of Health and Human Services (HHS). Shares of major COVID vaccine manufacturers, including Moderna and Pfizer, fell by 4% and 4.3%, respectively, while Novavax dropped by 2.6%. International companies were also impacted, with Germany-based BioNTech losing 5.9% and British pharmaceutical giant GSK seeing a 2.9% decline.
The declines started on Thursday afternoon after news broke of Trump’s pick, which has stirred significant controversy. Kennedy, a vocal critic of childhood vaccinations, has frequently expressed doubts about their safety and even founded the nonprofit organization Children’s Health Defense, which advocates against vaccine mandates. Although he has assured that he wouldn’t “take away” vaccines, his long-standing anti-vaccine stance raised concerns among health experts and the pharmaceutical industry.
Kennedy’s views on public health extend beyond vaccines. He has made several controversial statements, such as linking environmental factors to rising cases of Tourette syndrome and peanut allergies and supporting the consumption of raw milk, despite health warnings. His nomination has caused unease within the healthcare sector, especially as he would oversee a vast network of health agencies, a $1.7 trillion budget, and 80,000 employees if confirmed.
These concerns have extended into the stock market, where shares of companies like Pfizer and Moderna, which had seen record profits during the COVID-19 pandemic, have struggled to maintain their performance as Americans become less reliant on COVID vaccines. The overall uncertainty surrounding Kennedy’s potential influence on U.S. health policy seems to have added to the volatility in the pharmaceutical sector.