Shares of Moderna Inc. MRNA are trading lower after President-elect Donald Trump nominated Robert F. Kennedy Jr. to lead the Department of Health and Human Services.
Shares of Moderna Inc (NASDAQ:MRNA) are trading lower after President-elect Donald Trump nominated Robert F. Kennedy Jr. to lead the Department of Health and Human Services. Here’s what you need to know.
What To Know: Kennedy has been a vocal critic of vaccines and mainstream medical practices, raising concerns about potential reforms at federal health agencies, including the FDA and NIH. Speculation about reduced funding, department eliminations and restructuring at the NIH has created unease among employees and investors. FDA staff are reportedly considering resignations due to concerns about Kennedy's potential policies.
Kennedy has proposed reducing the NIH's 27 divisions to 15 and replacing 600 employees, raising alarms about the future of federally funded research and its independence. Employees at the FDA and NIH are apprehensive about potential budget cuts and the politicization of research. For Moderna, this creates uncertainty about the future of vaccine development and approval processes.
Industry representatives, including the Pharmaceutical Research and Manufacturers of America, have expressed concerns about preserving innovation and maintaining the U.S.'s leadership in drug development. Despite the uncertainty, they indicated they may collaborate with the incoming administration to address healthcare challenges.
Why It Matters: These developments have heightened investor fears about the pharmaceutical sector, particularly vaccine developers like Moderna, which rely on federal approval processes and public trust in immunization programs.
The uncertainty surrounding federal health policies and their impact on vaccine programs is driving the sell-off in Moderna and other vaccine stocks. Shares are under pressure as investors weigh the potential for reduced government support and a more challenging regulatory environment.
MRNA Price Action: Moderna shares were down by 6.16% at $37.33 at the time of writing, according to Benzinga Pro.
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