Drugmaker Shares Drop as RFK Jr. Appointed to Lead HHS

Shares Tumble Following HHS Appointment of RFK Jr.

Shares in several pharmaceutical and biotechnology companies have fallen since President-elect Trump announced Thursday that he had tapped vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services (HHS). The SPDR S&P Biotech ETF, which tracks the biotech sector, has dropped 3.7 percent as of noon. Shares in major pharmaceutical companies are down as well: Pfizer has fallen 4.6 percent, Eli Lilly 4.2 percent, Amgen 4.9 percent and Novo Nordisk more than 3.1 percent.

HHS's Role and Kennedy's Influence

As part of its mission to enhance the health and well-being of all Americans, HHS oversees the approval of drugs and medical supplies through its Food and Drug Administration (FDA) and responds to disease outbreaks through its Centers for Disease Control and Prevention (CDC).

In a post on the social media platform X Thursday, Trump said, “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.”

Potential Impact on the Pharmaceutical Industry

Kennedy’s well-known vaccine skepticism and stated aims to lower prescription drug prices, curb direct-to-consumer pharmaceutical advertising, and reallocate part of the National Institutes of Health budget toward preventive approaches has put the pharmaceutical industry on edge. A spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA) declined to comment on member companies’ stock prices.

PhRMA president and CEO Stephen Ubl stated that the association wants to work with the Trump administration to further strengthen the innovation ecosystem and improve health care for patients.