Shares of vaccine makers such as Moderna (MRNA) and Novavax (NVAX) are down on news that president-elect Donald Trump has nominated Robert F. Kennedy Jr. (RFK Jr.) to lead the Department of Health and Human Services.
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In choppy trading, shares of Moderna, Novavax and Pfizer (PFE) were down as much as 5% on November 15 following media reports that Kennedy, a prominent vaccine skeptic, has been nominated to lead the U.S. government’s health department.
Kennedy has been an outspoken critic of Covid-19 vaccines, claimed that vaccines increase the likelihood of people developing autism, and said that he wants to overhaul the U.S. Food and Drug Administration (FDA) that approves and regulates vaccines and prescription medications in America.
Kennedy is also the founder of the non-profit Children’s Health Defense, which is among the most well-funded anti-vaccine organizations in the U.S.
Uncertainty for Vaccine Makers
It remains to be seen if Kennedy will be confirmed as Health Secretary through a congressional process. However, his nomination has created a level of uncertainty for vaccine and prescription drug makers, which is exerting downward pressure on their stocks.
Some policy experts have warned that Kennedy leading the U.S. Department of Health could lead to radical upheaval that may result in fewer Americans receiving routine immunizations that have for decades saved lives and prevented public health crises.
Pharmaceutical companies such as Pfizer, Moderna, and Novavax are struggling following a drop-off in Covid-19 vaccination rates in the U.S. as the pandemic has waned, which has hurt their finances.
Is MRNA Stock a Buy?
Moderna stock has a consensus Hold rating among 19 Wall Street analysts. That rating is based on seven Buy, nine Hold, and three Sell recommendations issued in the last three months. The average MRNA price target of $84.53 implies 128.46% upside from current levels.
