Trump Taps Vaccine Skeptic RFK Jr. to Lead HHS. Moderna, Novavax Stock Slide. -- Barrons.com

Dow Jones11-15

By Josh Nathan-Kazis

Donald Trump nominated Robert F. Kennedy Jr., a vaccine skeptic and harsh critic of federal health agencies, to be his Secretary of Health and Human Services.

Trump announced the nomination in a post on Truth Social. "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," he wrote.

The announcement appeared to take the industry by surprise. Shortly before the election, the co-chair of Trump's transition effort seemed to indicate on CNN that Kennedy would not be nominated to lead the HHS. Instead, media reports suggested he would have a White House role overseeing various agencies.

Kennedy is an unorthodox pick to lead HHS. The Food and Drug Administration and the Centers for Disease Control and Prevention, among other agencies, all report to the HHS secretary.

The prospect of Kennedy leading HHS or a similar agency has raised major questions about the future of the health system. His nomination to the HHS post heightens those uncertainties. "Kennedy likely will lead to significantly more volatility in health markets," Raymond James healthcare policy analyst Chris Meekins wrote in a note to investors late Thursday.

Shares of vaccine makers are down since the election. Moderna, the Covid-19 vaccine manufacturer, dropped sharply in the final moments of trading on Thursday, as Politico first reported that Kennedy would be tapped for the HHS job.

Moderna shares fell 5.6% in regular trading Thursday, and shares of Novavax dropped 7%. In after-hours, Moderna was down another 1%, while Novavax dipped 0.3%.

The implications could go far beyond the vaccine industry. At the helm of HHS, Kennedy will face pressing health challenges, including an increasingly worrying outbreak of avian influenza, among many other threats.

Kennedy has promoted health-related conspiracy theories, including the discredited notion of a link between childhood vaccines and autism. Last year, the New York Post reported that he said there is "an argument" that the Covid virus is "ethnically targeted" and that the people "most immune are Ashkenazi Jews and Chinese."

Now, the industry's attention will turn to the Senate, which must approve Trump's nomination. Kennedy is likely to receive no support from Democrats. Senator Ron Wyden, a Democrat from Oregon, issued a statement late Thursday calling Kennedy's views "outlandish."

Write to Josh Nathan-Kazis at josh.nathan-kazis@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

 

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November 14, 2024 16:56 ET (21:56 GMT)

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