Moderna, Novavax Shares Slip After Trump Names RFK Jr. Health Chief Nominee

Vaccine stocks experienced a notable decline in late afternoon trading on Thursday following reports that President-elect Donald Trump intends to appoint Robert F. Kennedy Jr. as the head of the Department of Health and Human Services (HHS).

Shares of Moderna (MRNA) dropped by almost 6%, while Novavax (NVAX) saw a decrease of more than 7%. Pfizer (PFE) was not immune, with its stock sliding more than 2.6%. The impact on these companies was significant, with both Moderna and Novavax stocks already having lost 27% and 30%, respectively, of their value over the past month, a trend that continued with the shares sliding slightly in after-hours trading following Trump’s confirmation of the nomination on X.

Trump’s perspective on the appointment was clear in his post on X, where he highlighted the critical role of HHS in safeguarding Americans from various health threats, including those related to pharmaceuticals. His statement aimed to underline a broad health policy approach that seems to resonate with Kennedy’s views: “The Safety and Health of all Americans is the most important role of any Administration, and 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.”

Kennedy, who initially ran for president in 2024 before withdrawing and endorsing Trump, has been known for his skepticism towards vaccines. Despite stating in an NPR interview on November 6 that his administration would not forcibly remove vaccines from public use, his background with the Children’s Health Defense, which criticizes childhood vaccinations, and his public assertions that “There’s no vaccine that is safe and effective,” as per the Associated Press, have fueled concerns among investors.

Trump’s comments during a late October rally, where he encouraged Kennedy to “go wild” on health policies, have been seen by the market as a precursor to potential shifts in vaccine and health policy, directly impacting investor confidence in vaccine stocks.

This move by Trump to place Kennedy at the helm of HHS, has sparked debates on the future direction of U.S. health policy, particularly concerning vaccinations. The market’s reaction reflects not just a response to the potential policy shifts but also the uncertainty surrounding how Kennedy’s leadership might affect the pharmaceutical industry, especially in terms of vaccine development and public health strategies.

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