Shares of vaccine makers such as Moderna (MRNA) and Pfizer (PFE) have plunged on news that president-elect Donald Trump has nominated Robert F. Kennedy Jr. (RFK Jr.) to lead the U.S. Department of Health and Human Services.
Shares of Moderna fell 7% and Pfizer’s stock declined 5% on Nov. 15 following media reports that Kennedy, a prominent vaccine skeptic, has been nominated to lead the health department.
Kennedy has been an outspoken critic of Covid-19 vaccines, claimed that vaccines increase the likelihood of people developing autism, and said that he wants to overhaul the U.S. Food and Drug Administration (FDA) that approves vaccines and prescription medications.
Kennedy is also the founder of the non-profit Children’s Health Defense, which is among the most well-funded anti-vaccine organizations in the U.S.
It remains to be seen if Kennedy will be confirmed as Health Secretary through a congressional process. However, his nomination has sent shockwaves through drugmaker stocks.
Some policy experts have warned that Kennedy leading the U.S. Department of Health could result in fewer Americans receiving routine immunizations that have for decades saved lives.
News of his nomination comes as pharmaceutical companies such as Pfizer and Moderna are grappling with a drop-off in Covid-19 vaccination rates, which has hurt their financial results.
Moderna’s stock is down 67% this year and trading at $36.85 U.S. per share. The stock of Pfizer has declined 17% year-to-date to trade at $24.80 U.S. a share.
