Pharma stocks tank as Trump names RFK Jr health chief

15th Nov 2024 12:11

(Sharecast News) - Pharmaceutical and biotech stocks around the world slumped on Friday, after US president-elect Donald Trump appointed vaccine sceptic Robert F Kennedy Jr to his cabinet.

Trump named Kennedy head of the US Department of Health and Human Services, the latest in a string of controversial senior appointments made by the incoming president.

The role will give Kennedy significant influence over public health policy and drug regulation. A vocal critic of the pharmaceutical industry, Kennedy has falsely linked vaccines to autism, amplified conspiracy theories and vowed to stop fluoride being added to drinking water.

US-listed vaccine makers Moderna and BioNTech were particularly badly hit. Moderna was down 1% in pre-market trading as at 1230 GMT, following a 6% slide in Thursday, while BioNTech's 2% fall compounded the previous session's 7% rout.

US drugs giant Pfizer, which closed down 3% lighter on Thursday, was off 1%.

In Europe GSK was down 3% at 1,311.17p, AstraZeneca was off just over 2% at 10,034p, Switzerland's Novartis fell 1% and France's Sanofi lost 3%.

One of the hardest hit, however, was Denmark's Bavarian Nordic, a maker of smallpox and mpox vaccines. It plunged 16%.

Chief executive Paul Chaplin told Reuters that while Kennedy could fuel vaccine scepticism, the company still expected the Trump administration to boost biodefence funding.

Russ Mould, investment director at AJ Bell, said: "The announcement of vaccine-sceptic Kennedy as health secretary pick for the incoming Trump administration has spooked investors.

"The impact on the sector is hard to judge fully at this stage, but at the very least it will cause a great deal of uncertainty."