Following President-elect Trump’s announcement that Robert F. Kennedy Jr., a vaccine skeptic, would be leading the Department of Health and Human Services (HHS), shares in several pharmaceutical and biotechnology companies have taken a dip.
The SPDR S&P Biotech ETF, which tracks the biotech sector, has fallen by 3.7 percent as of midday EST. Other major pharmaceutical companies have also seen declines: Pfizer is down by 4.6 percent, Eli Lilly has dropped 4.2 percent, Amgen decreased by 4.9 percent, and Novo Nordisk has lost more than 3.1 percent of its value.
Trump’s HHS pick rattles drug companies with promises of sweeping reforms
The Department of Health and Human Services, responsible for overseeing drug and medical supply approvals through the Food and Drug Administration and managing disease outbreaks through the Centers for Disease Control and Prevention, plays a vital role in the nation’s health system.
In a post on the social media platform X, Trump stated that HHS’s mission would focus on safeguarding Americans from harmful chemicals, pollutants, pesticides, pharmaceutical products, and food additives, which, he claims, have contributed to the nation’s health crisis. He further criticized the food and drug industries for misleading the public about health risks.
Kennedy’s appointment has raised concerns among Democrats and public health professionals, especially due to his lack of medical or public health credentials. They fear his views could interfere with the operations and funding of essential government health agencies and heighten vaccine hesitancy.
Kennedy’s well-known vaccine skepticism, combined with his plans to reduce prescription drug prices, restrict pharmaceutical advertising, and redirect NIH funds to preventive and alternative health measures, has left the pharmaceutical industry uneasy.
A spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA) declined to address the stock market impact on its members. However, PhRMA President and CEO Stephen Ubl issued a statement expressing the organization’s desire to collaborate with the Trump administration to enhance the nation’s healthcare system and innovation.
