Vaccine Stocks Fall After FDA’s Peter Marks Resigns Over RFK Jr.

Biotech Stocks Plunge as Top Vaccine Regulator Quits

Shares of major vaccine makers dropped on Monday after a key U.S. health official resigned in protest of Health and Human Services Secretary Robert F. Kennedy Jr.’s views on immunization.

Resignation of Peter Marks

The departure of Peter Marks, the Food and Drug Administration’s top vaccine regulator, has raised fresh fears about whether the Trump administration will quickly approve and promote critical shots. In his position, Marks oversaw the introduction of Covid-19 vaccines and rules for the use of emerging treatments like cell and gene therapies.

Stock Market Reaction

Shares of Moderna and Novavax dropped more than 11% and 6%, respectively, in early trading. The SPDR S&P Biotech ETF slid nearly 5%. Shares of Pfizer, which has broader businesses to insulate it from damage to its vaccine portfolio, lost about 2%.

Analysts’ Concerns

Some Wall Street analysts said Marks’ departure could undermine the FDA’s mission of ensuring safe and effective treatments reach patients in the U.S. That could put even more pressure on a struggling biotech sector.

BMO Capital Markets’ View

"Taking a step back, we view this departure as a significant negative for the BioPharma and Biotech sectors, as FDA’s independence rooted in sound scientific rigor is critical for their efficient functioning," analysts at BMO Capital Markets wrote in a note Monday.

Resignation Letter

In his resignation letter, Marks criticized Kennedy’s "misinformation and lies" about immunization. He said a growing measles outbreak that started in Texas came as a consequence of "undermining confidence in well-established vaccines."

Department of Health and Human Services’ Response

The Department of Health and Human Services did not immediately respond to a request for comment.

Kennedy’s Views on Vaccines

Kennedy, a prominent vaccine skeptic, has already taken steps that public health experts say could deter routine immunizations in the U.S. He has downplayed the importance of the measles, mumps and rubella vaccine and promoted unproven treatments to counter the measles outbreak.

Analysts’ Take

Analysts at Leerink Partners wrote in a Monday note that the effect of Marks’ resignation on biotech and pharmaceutical stocks will depend in part on who replaces him at the FDA and whether Republicans in the White House and Congress start to lose patience with his approach. Other analysts also stressed that Marks is only one official at the agency and noted that new FDA Commissioner Marty Makary has a track record of supporting proven treatments.

Conclusion

The resignation of Peter Marks, the top vaccine regulator at the FDA, has sent shockwaves through the biotech and pharmaceutical industries. The impact of this departure on the sector will depend on who replaces Marks at the FDA and whether the administration’s approach to vaccines shifts in the coming months.

Frequently Asked Questions

Q: What is the impact of Peter Marks’ resignation on the biotech and pharmaceutical industries?
A: The resignation has sent shockwaves through the industries, with shares of major vaccine makers dropping in early trading.

Q: Why did Peter Marks resign?
A: Marks resigned in protest of Health and Human Services Secretary Robert F. Kennedy Jr.’s views on immunization.

Q: What are the concerns about the FDA’s mission under the new administration?
A: Some analysts are concerned that the FDA’s mission of ensuring safe and effective treatments reach patients in the U.S. could be undermined, potentially putting even more pressure on a struggling biotech sector.