The SPDR S&P Biotech ETF, which tracks the biotech sector, dropped 5.29 percent on the day. Shares in major pharmaceutical companies were down as well: Pfizer fell nearly 4.7 percent, Eli Lilly 4.9 percent, Amgen 4.1 percent and AstraZeneca 1.8 percent.
A spokesperson for the Pharmaceutical Research and Manufacturers of America (PhRMA), a trade association representing the U.S. pharmaceutical industries, declined to comment on member companies’ stock prices.
PhRMA president and CEO Stephen Ubl said in a statement Thursday said the group wants to “work with the Trump administration to further strengthen our innovation ecosystem and improve health care for patients.” It did not mention Kennedy.
In a note to clients, Raymond James analyst Chris Meekins said Kennedy “likely will lead to significantly more volatility in health markets, making navigating policy risks far more challenging.”
Meekins, who served in HHS during the Trump administration as a senior official for preparedness and response, said Kennedy’s views are so outside the traditional GOP orthodoxy it makes it much more difficult for investors to gauge risks.
“Investors may need to forget everything they thought they knew about Republicans and healthcare,” Meekins wrote. He added that if confirmed, Kennedy’s appointment “may make it less likely traditional qualified experienced GOP staff will agree to join HHS, creating more uncertainty.”
It’s unclear the level of support Kennedy has in the Senate, where Republicans will hold 53 seats next year. The vaccine skeptic and environmental lawyer raised eyebrows among members of both parties during his scuttled Democratic-turned-independent presidential bid.
But at least one prominent Republican is calling on senators to reject the nomination. Former Vice President Mike Pence on Friday said Kennedy’s views on abortion are too liberal and disqualify him.
