Vaccine Maker Stocks See Decline Following Kennedy’s Appointment to Health Department

November 15, 2024 04:26 PM AEDT | By Team Kalkine Media

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Vaccine Maker Stocks See Decline Following Kennedy’s Appointment to Health Department — Image source: shutterstock

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Highlights

Vaccine maker shares dip after Kennedy’s appointment announcement.

Moderna and Pfizer experience notable declines.

Analysts and critics share mixed views on Kennedy's potential impact.

The vaccine industry saw a downturn in stock prices after President-elect Donald Trump appointed Robert F. Kennedy Jr., a noted vaccine skeptic, to lead the United States Department of Health and Human Services (HHS). The appointment stirred market reactions, with several major vaccine companies seeing declines.

Shares in Moderna (NASDAQ:MRNA), Pfizer (NYSE:PFE), BioNTech SE ADR, Novavax Inc, and Vaxcyte Inc responded swiftly to the news, with prices dropping noticeably by the end of trading. Moderna’s shares fell approximately 6%, BioNTech SE ADR and Novavax Inc decreased by around 7%, Vaxcyte Inc declined by 4%, and Pfizer saw a 3% drop. The declines began following a report by Politico, suggesting Kennedy’s upcoming appointment, and further deepened after Trump confirmed the decision in a social media announcement after the market closed.

In his statement, Trump emphasized that the new administration aims to address public health issues tied to "deception, misinformation, and disinformation" related to food and pharmaceutical products. His post also underscored the administration's goals of reducing chronic disease, achieving transparency, and protecting public health by addressing the impacts of chemicals, pollutants, and additives. Trump noted that Kennedy’s role would focus on restoring a high standard of scientific research and safety within public health agencies.

This appointment has sparked divided opinions among industry watchers. While some are concerned about Kennedy’s influence, known for his critical views on vaccines, others feel his impact on policy may be more limited. Raymond James analyst Chris Meekins noted that regulatory structures within HHS would restrict Kennedy's range of actions, potentially softening the effect of his leadership. Meekins’ comments were aimed at calming concerns in the market, where investors remain cautious about potential policy shifts in the health sector.

Critics, however, reacted strongly. Robert Weissman, co-president of Public Citizen, expressed his concern, arguing that Kennedy’s presence at HHS could conflict with the agency’s public health mission. Weissman contended that Kennedy’s past positions on vaccines might not align with the health needs of the public.

With Kennedy's appointment, the market response underscores the sensitivity of the vaccine industry to policy shifts and leadership changes within the government. This development will likely be closely watched as the administration settles into its health policy roles and directions.

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