"Most lethal in history" U.S. Health Secretary nomination! Vaccine stocks have plummeted for several consecutive days, and Kennedy has been criticized as the number one threat to public health
The nomination of Robert F. Kennedy Jr. as U.S. Health Secretary has triggered a significant drop in vaccine stocks, with BioNTech falling nearly 9% at one point and Moderna dropping over 8%. Analysts warn that Kennedy's anti-vaccine stance could have far-reaching effects on the biotechnology industry. Following the nomination, the healthcare sector saw a notable decline in both the U.S. and European markets, with panic spreading
Trump's nomination of "anti-vaccine pioneer" Robert F. Kennedy has not yet received Senate approval for formal appointment, but the stock market is already in turmoil, making it arguably the "most lethal" nomination for U.S. Secretary of Health.
After Trump officially announced Kennedy's nomination on Thursday after U.S. stock market hours, vaccine stocks plummeted on Thursday and Friday, dragging down the entire healthcare sector, and panic spread from U.S. stocks to Europe.
On Friday during U.S. trading hours, vaccine stocks listed in the U.S., BioNTech and Novavax, fell nearly 9% and 5.7% respectively in early trading, while Moderna dropped over 8% towards the end of the morning session, and Pfizer saw a decline of nearly 6%. The healthcare sector of the S&P 500 fell nearly 2.1% in early trading, with the decline narrowing to under 2% by midday, still potentially marking a new closing low since late May. The Nasdaq Biotechnology Index fell over 4% in early trading.
European healthcare stocks were not far behind in their decline. On Friday, the healthcare sector of the pan-European index, the STOXX Europe 600, closed down 2.9%, marking a new low since April 18. The MSCI Nordic Countries Index fell 1.7%, reaching a new low since January 26, with the Nordic healthcare sector leading the decline. Among its constituents, Sweden-listed Orphan Biovitrum fell about 10%, the largest drop, while Denmark-listed Novo Nordisk, the highest market cap pharmaceutical company in Europe, dropped about 5.30%.
Industry Media Personnel: Kennedy's "Junk Science" Poses Huge Threat to Public Health
Why did vaccine stocks and the entire healthcare sector respond with such a significant drop to Kennedy's nomination? Firstly, Kennedy himself has a strong anti-vaccine inclination; he has publicly questioned experimental mRNA vaccines and challenged the bureaucratic mechanisms regulating the vaccine industry.
For example, he stated in July this year, "The whole system is broken," and "When you vaccinate an infant, it's like injecting 38 different vaccines at once, as if you're vaccinating a horse, not a 10-pound or 20-pound baby... Have you seen its size? It's huge, and after vaccination, the infant suddenly starts to change significantly. I've seen it too many times."
Moreover, from Trump's statements, it appears he wants Kennedy to have free rein to make significant changes once appointed.
In a speech after his election victory, Trump introduced Kennedy by saying, "He will help restore health to America... He wants to do some things, and we will let him do them." The so-called restoration of health in America would require a complete overhaul of the U.S. Food and Drug Administration (FDA) and the U.S. Department of Agriculture (USDA).
CNN's chief medical correspondent Sanjay Gupta expressed his dismay at Kennedy's nomination, stating:
"I can't think of anyone who poses a greater threat to public health than Robert F. Kennedy." However, Gupta's words were sarcastically interpreted by the financial blog Zerohedge as: Kennedy will disrupt and prohibit vaccine companies from controlling broadcasts with advertising fees, correspondingly, advertising revenue for CNN and other mainstream media will plummet.
Bloomberg reported that Lisa Jarvis, a columnist covering the biotechnology, healthcare, and pharmaceutical industries, published an article on Friday titled "Kennedy's Junk Science Puts Americans at Risk," stating that "the bizarre conspiracy theories he promotes could make the government a 'booster of misinformation.'"
Wall Street: Anti-vaccine Fighter Nominated as Health Secretary, Biotechnology Industry Faces Huge Uncertainty
Wall Street analysts believe that Kennedy's appointment as Health Secretary brings significant uncertainty to the entire biotechnology sector.
Goldman Sachs analyst Martin Ehigiator commented in a report on Friday that Kennedy has been outspoken about vaccine issues and is regarded as one of the most famous anti-vaccine figures in the United States.
Deutsche Bank analyst Emmanuel Papadakis lamented in a report on Friday: "Vaccines are one of the greatest scientific achievements impacting public health; unfortunately, the nominee (Kennedy) does not share this view." Due to Kennedy's nomination, Papadakis downgraded GlaxoSmithKline's stock rating to hold.
RBC Capital Markets analyst Brian Abrahams stated that Kennedy's election could have "far-reaching and unpredictable effects on the biotechnology industry," and there will continue to be "considerable uncertainty and investment challenges until there is a clearer understanding of the likelihood of him actually obtaining the position, his directives, and who will lead other major federal healthcare agencies."
Although it is still uncertain whether Kennedy will actually serve as Health Secretary, Abrahams expects that "it is quite likely."
Wells Fargo analyst Larry Biegelsen noted that Kennedy's concerns about vaccines could "lead to a decline in vaccination rates, which would negatively impact companies that produce vaccine syringes." However, Kennedy's recent policy ideas do not focus on medical technology, which may leave the industry "in a relatively favorable position in the healthcare sector."