* 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 Danish 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].”
Volkswagen blues: Carmaker struggles to build a business for an EV future
‘If you charge someone €400 they are immediately p*ssed off.’ Third generation of Fitzpatrick hoteliers
Next government must get real about the promises it made during the campaign
How do I work out what my State pension will be worth?
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.
* This article was edited on Tuesday, November 26th, 2024
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here