Shares in several pharmaceutical and biotechnology companies have fallen since President-elect Trump announced Thursday that he had tapped vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services (HHS).
The SPDR S&P Biotech ETF, which tracks the biotech sector, has dropped 3.7 percent as of noon. Shares in major pharmaceutical companies are down as well: Pfizer has fallen 4.6 percent, Eli Lilly 4.2 percent, Amgen 4.9 percent and Novo Nordisk more than 3.1 percent.
As part of its mission to “enhance the health and well-being of all Americans,” HHS oversees the approval of drugs and medical supplies through its Food and Drug Administration (FDA) and responds to disease outbreaks through its Centers for Disease Control and Prevention (CDC).
In a post on the social media platform X Thursday, Trump said “HHS will play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products, and food additives that have contributed to the overwhelming Health Crisis in this Country.”
“For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health.”
The announcement sparked alarm among Democrats and public health experts concerned Kennedy, who does not have a medical or public health degree, could meddle in the workings and funding of key government agencies and exacerbate vaccine hesitancy.
Beyond his well-known vaccine skepticism, Kennedy’s stated aims to lower prescription drug prices, curb direct-to-consumer pharmaceutical advertising, reallocate half of the National Institutes of Health budget “toward preventive, alternative and holistic approaches to health” and more have the pharmaceutical industry on edge.
A spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA), a trade association representing the U.S. pharmaceutical industries, declined to comment on member companies’ stock prices.
PhRMA president and CEO Stephen Ubl said in a statement Thursday following Kennedy’s nomination that the trade association wants to “work with the Trump administration to further strengthen our innovation ecosystem and improve health care for patients.”