By Dominic Chopping
Shares in European vaccine makers tumbled Friday after President-elect Donald Trump picked vaccine sceptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services.
In early European trade, Bavarian Nordic shares fell as much as 19%, while Valneva shares dropped as much as 10%. GSK and Sanofi both fell around 4%.
Kennedy has been a vocal critic of public-health leaders' approaches to the Covid-19 pandemic and vaccines in recent years. He has also claimed that unhealthy food, medicines and water have fueled the rise of chronic disease in America, and that government regulators have been corrupted by corporate influence.
RFK Jr has promised sweeping changes to food-and-drug regulation and government-funded scientific research, but said he wouldn't "take away" anybody's vaccines.
He is particularly critical of childhood mandated vaccines, which he claims are exempt from prelicensing safety trials. He previously claimed vaccines increase the risk of autism in children.
Trump said at a rally ahead of the election that he was going to let Kennedy "go wild" on health, food and medicines.
Scientists and public-health leaders have expressed concern over a Kennedy appointment in Trump's administration, highlighting children's measles vaccination rates which they say are already lagging the health department's targets.
The share falls in Europe come after Pfizer, Moderna and BioNTech all underperformed in the U.S. on Thursday.
Analysts at Jefferies expect the "anti-vax" sentiment to continue which could impact Covid vaccine revenues. Coupled with Kennedy's vocal criticism around the safety of childhood vaccines, this could negatively impact the perception of jabs in the U.S., they said.
This might not only lead to lower demand and sales but also potentially cause outbreaks if vaccinations aren't consistent over the next four years, the analysts added.
Another negative impact might be seen at the U.S. Food and Drug Administration, given Kennedy has been vocal on overhauling the agency. This could include cutting headcount or funding which could alter the FDA regulatory path for some companies and resources for biotech, Jefferies added.
However, Bryan Garnier Research analysts believe the share selloff is overdone, as vaccine recommendations have a rigid structure in place, led by panels of independent scientists.
"We see the potential governmental action likely focused on increased transparency and public information on vaccines risk/benefits," they said.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 15, 2024 05:13 ET (10:13 GMT)
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