The potential appointment of well-known vaccine sceptic Robert F Kennedy Jnr to the Trump cabinet in the role of head of the Department of Health and Human Services sent shivers through pharmaceutical companies on 14 November, with shares falling around 7% on average on both sides of the Atlantic.

Kennedy has previously cast doubts on the Covid-19 vaccine, describing it as ‘the deadliest vaccine ever made’.

Jefferies analyst Michael J Yee commented: ‘While it remains unclear how this would play out, we expect the ‘anti-vax’ sentiment to continue’, impacting Covid-19 vaccine revenue which Yee estimates at between $2 billion and $3 billion annually.

‘In terms of childhood vaccines, RFK has been vocal on their safety and most importantly on the basis that they cause autism.’

‘All of this together could negatively impact vaccine perception in the US and not only lead to lower demand and sales but could potentially cause outbreaks if vaccinations are not consistent over the next four years,’ concluded Yee.

If appointed by Congress, Kennedy would have sway over 10 agencies including the FDA (Food and Drug Administration), which is responsible for drug approvals, and the CDC (Centre for Disease Control and Prevention) which is instrumental in public health matters.

Kennedy has been outspoken about downsizing entire departments inside the FDA. Former biotechnology chief executive and another Trump appointee Vivek Ramaswamy has spoken about the need to reduce barriers to getting new drugs approved.

He believes this stops patients from assessing promising therapies and raises the costs of prescription drugs by impeding competition.

Trump’s nomination of Kennedy is likely to face a difficult Senate confirmation process and even if he is appointed some observers are sceptical any of his ideas will come to pass.

Henrik Juuel, chief executive of rabies and mpox vaccine maker Bavarian Nordic (BAVA:CPH), said recent investor selling in the sector was ‘a significant overreaction’ to Kennedy’s nomination.

‘I don’t think these things will ever happen. I don’t think anyone will allow them to. There must be some smart people advising him,’ added Juuel.

Bavarian Nordic shares fell as much as 17% on 15 November, after the company missed analysts’ profit expectations, before recovering in following the trading session.

Major vaccine makers GSK (GSK), Pfizer (PFE:NYSE), Moderna (MNRA:NASDAQ) and Sanofi (SAN:EPA) have so far remained silent on the issue. 

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