Kennedy is known as a vaccine sceptic and, if confirmed in the post, has vowed to use it to crack down on “Big Pharma”.
The US health secretary leads a huge agency overseeing everything from food safety to medical research and welfare programmes.
Critics of Kennedy, commonly known by his initials RFK Jr, include many public health officials, who have denounced his record of spreading health information that scientists say is false.
Trump picks vaccine sceptic RFK Jr for health secretary Five takeaways from Trump’s first week Before endorsing Trump, Kennedy had mounted a failed bid for the presidency himself as a third party candidate.
He said he thought a second Trump term, with RFK Jr as health secretary, could be good for some parts of his business, while raising risk for others, acknowledging that the uncertainty had hit share prices.
Following Trump’s appointment of RFK Jr. to the top position, health stocks plummet.
It was seventeen hours ago.
Nancy Sherman.
NBC News.
reporting from New York.
Shares of global healthcare and vaccine companies fell precipitously on Friday as investors expressed concern that Donald Trump’s appointment of Robert F. Kennedy Jr. as US Health Secretary might present new difficulties for the industry.
Kennedy has made a commitment to use his reputation as a vaccine skeptic to take aim at “Big Pharma,” if this is true.
An industry-wide sell-off was triggered by the news. While UK-listed companies AstraZeneca and GSK saw a more than 3% decline, Pfizer’s and Moderna’s shares fell more than 4% and 7%, respectively, in the US.
Despite doubts about how the new administration would follow through on its threats, Russ Mould, investment director at AJ Bell, said the selection had “spooked” shareholders.
“It is difficult to fully assess the impact on the sector at this time, but it will at the very least create a great deal of uncertainty,” he stated.
The US health secretary is in charge of a vast organization that manages everything from welfare initiatives to medical research and food safety.
Many public health officials have criticized Kennedy, who is often referred to by his initials RFK Jr., for his history of disseminating health information that scientists claim is inaccurate.
However, the former environmental attorney has gained popularity by appealing to people who believe that US regulators are too subservient to large pharmaceutical and food companies.
Trump appoints RFK Jr., a vaccine skeptic, as his health secretary.
Five things to remember from Trump’s first week.
Prior to supporting Trump, Kennedy had run unsuccessfully as a third-party presidential candidate. Calls for tighter regulations on food chemicals and dyes, the removal of highly processed foods from school lunches, and additional information sharing from pharmaceutical companies regarding vaccines were all part of that campaign.
If the Senate approves his nomination and he is given the authority to follow through on his promises, it will be a departure from both the Biden administration and Trump’s first term, when the government heavily invested in industry development of COVID vaccines while ignoring regulation.
But the industry was also alarmed by Trump’s attempts to cut drug costs, including by facilitating the importation of Canadian medications.
The CEO of Danish company Bavarian Nordic, whose stock fell more than 15%, Paul Chaplin, stated that the industry would have to wait to see what changes would truly occur.
He did, however, point out that the company’s mpox and smallpox vaccine business had actually benefited from policies implemented during Trump’s first term.
He acknowledged that share prices had been impacted by the uncertainty and stated that he believed a second Trump term with RFK Jr. as health secretary could benefit some aspects of his company while increasing risk for others.
On the BBC’s World Business Report radio show, he stated, “It is too early to say and we have to wait and see how things develop.”.
Across Europe, shares of French flu vaccine leader Sanofi fell more than 3% in Paris, while shares of Ozempic manufacturer Novo Nordisk, listed in Denmark, closed more than 5% lower.
