Donald Trump’s nomination of anti-vaccine activist Robert Kennedy jnr as US secretary of health and human services has provoked alarm in health circles, but he’s also a threat to investors – especially pharmaceutical investors.
Vaccine makers such as Pfizer, Moderna, BioNTech and Novavax have tumbled. So too have Novo Nordisk and Eli Lilly, two companies that have benefited from soaring demand for new GLP-1 obesity drugs.
There has been huge excitement about anti-obesity drugs, but it appears Kennedy isn’t a fan, recently saying Novo is “counting on selling it to Americans because we’re so stupid and so addicted to drugs”.
Have investors overreacted? Yes, said Henrik Juuel of German vaccine maker Bavarian Nordic. “I don’t think these things will ever happen,” he told the Financial Times. “I don’t think anyone will allow them to. There must be some smart people advising [him].”
One wonders how receptive a zealot such as Kennedy might be to the advice of “smart” people.
Of course, the US senate may not confirm Kennedy as health secretary. Unfortunately for investors, that looks unlikely. Betting on prediction market Polymarket gives Kennedy a 70 per cent chance of being confirmed, suggesting investors may need to brace for a turbulent period in healthcare policymaking.
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