Pharma shares hit as Trump nominates RFK Jr. for Health Secretary

Robert F. Kennedy Jr., an anti-vaccine activist, has been chosen as President-elect Donald Trump’s nominee for health secretary and is set to lead the Department of Health and Human Services (HHS). His appointment tanked major pharmaceutical stocks on Thursday, the day of the announcement, and the decline continued yesterday.

Novo Nordisk lost over 3% of its value, while Pfizer and Moderna lost 5% and 7%, respectively.

RFK Jr. has helped propagate doubts about vaccines, and his appointment would give him authority over the country’s top health agencies. Experts worry that the move can lead to vaccine hesitancy and also affect the advice doctors give to patients.

However, RFK Jr. has said he won’t ban vaccines.

He has repeatedly criticized the Food and Drug Administration (FDA), accusing it of being too heavily influenced by pharmaceutical companies and suppressing other remedies.

These companies fund about 46% of the FDA’s $7.2 billion budget through user fees, which are paid to expedite product reviews. He has threatened to remove staff and overhaul departments, including the FDA’s food and nutrition center.

Through his nonprofit, Children’s Health Defense, RFK Jr. has challenged COVID-19 vaccine approvals, arguing that the FDA’s reliance on industry fees creates conflicts of interest. 

Additionally, he plans to refocus research funding at the National Institutes of Health (NIH) toward preventive and alternative therapies, critiquing the agency’s ties to the pharma industry.

RFK Jr. also intends to reverse the CDC’s fluoride recommendations, arguing against its use in water supplies. Though he is opposed to ultraprocessed food, he also claims that he drinks raw milk.

He advocates for Medicaid and Medicare to cover gym memberships and healthy food rather than expensive weight-loss drugs like Ozempic.

Despite RFK Jr.’s intentions, experts like former FDA counsel Dan Troy doubt major changes will occur, citing the technical expertise required for regulatory work.

The Pharmaceutical Research and Manufacturers of America, a key industry group, highlighted past vaccine successes like polio elimination but did not directly address his critical stance on the FDA.