Trump nominates "vaccine skeptic" Robert Kennedy Jr. as HHS secretary: vaccine stocks plummet, psychedelic drug concept stocks soar.

Before the Friday stock market, individual stocks in the vaccine sector of the US stock market generally fell, while stocks of psychedelic drugs generally rose in price. This was mainly due to President-elect Donald Trump's announcement that he would appoint Robert F. Kennedy Jr. as the Secretary of the Department of Health and Human Services (HHS), potentially elevating a prominent "vaccine skeptic" and broader industry critic to the highest position in US medical and health policy. Leading pharmaceutical giants in the production of vaccines in Europe and America suffered market value losses, including the largest flu vaccine manufacturer, French company Sanofi, and London-listed GlaxoSmithKline plc Sponsored ADR, whose main vaccine product is Shingrix for treating shingles. The stock prices of these two companies fell by more than 4% in early trading on the European stock market. The ADR price of GlaxoSmithKline plc Sponsored ADR also weakened significantly in pre-market trading on Friday. Analyst Emmanuel Papadakis from Deutsche Bank Aktiengesellschaft downgraded the stock rating of GlaxoSmithKline plc Sponsored ADR from "Buy" to "Hold" after hearing this news. "We believe that vaccines are one of the greatest scientific achievements that influence public health development: unfortunately, this candidate does not share this view," he wrote in a report to clients. Since Trump's announcement of victory, the stock prices of vaccine manufacturers have generally plummeted. After experiencing a significant drop in stock prices on Thursday, US-listed American vaccine newcomers Moderna (MRNA.US), considered the pioneer of mRNA COVID-19 vaccines, as well as US vaccine manufacturers pharmaceutical giant Pfizer Inc. (PFE.US) and vaccine newcomer Novavax, Inc. (NVAX.US), continued their downward trend in pre-market trading in the US stock market. However, not only vaccine stocks fell, as Trump's tweets on social media X (formerly known as Twitter) claiming "massive deception, misinformation, and false information" in this industry led to a general decline in the prices of European healthcare stocks with significant exposure to the US market. European pharmaceutical giants Novo Nordisk A/S Sponsored ADR Class B saw a 3.3% drop in stock price, while another giant Roche saw a 3.4% decline. Over 80% of the stocks in the STOXX Europe 600 healthcare index saw significant price declines. Brian Abraham, global healthcare research chief at investment firm RBC Capital Markets, said in a report to clients that Kennedy's selection "could have profound and unpredictable implications for the cutting-edge field of global biotechnology, increasing considerable uncertainty and challenging the investability of the industry." Kennedy, 70, is the son of Senator Robert F. Kennedy and the nephew of former President John F. Kennedy. He surprisingly left the Democratic Party this year to run as an independent candidate in the presidential election, but ultimately endorsed the Republican leader Trump. During the 2020 COVID-19 pandemic, he referred to vaccines against the virus as a "crime against humanity" and likened it to the Nazi atrocities. These remarks have drawn criticism from multiple parties, including his wife, actress Cheryl Hines. As the top leader of the Department of Health and Human Services, which is crucial for US and global health, as well as healthcare, Kennedy will lead a massive federal department that oversees over 100 programs supporting medical, public health, and healthcare social services, with its managed federal agencies mainly including the Centers for Disease Control and Prevention (CDC), Centers for Medicare and Medicaid Services, and the Food and Drug Administration (FDA). "However, Kennedy's final confirmation is still uncertain," Abraham from RBC Capital Markets added. "The Senate may push back." While Kennedy has pledged not to "deprive anyone of their vaccine rights," his past statements suggest concerns about vaccines related to autism, dangerous ingredients, safety risks, and the efficacy of certain vaccines, which has caught the industry's attention. On the other hand, he has recently fiercely criticized the FDA for its "active suppression of psychedelic drugs," leading to a 14% pre-market surge for Atai Life Sciences (ATAI.US), a 5% rise for Incannex Healthcare (IXHL.US), and a 4% pre-market increase for Compass Pathways (CMPS.US). Kennedy has a more open attitude towards psychedelic drugs, believing in their potential for treating mental health issues. He advocates for more research on psychedelic drugs and supports their use in medical settings. During the 2024 US presidential election, Kennedy discussed health policy collaboration with Donald Trump, including the promotion of psychedelic drugs and other products considered "long suppressed."