Hoping for Allies Among Trump's Health Picks, Pharma Faces Hostility

Trump’s Healthcare Picks Raise Concerns Within Drug Industry #

Pharmaceutical executives who hoped for reduced regulation under a second Trump administration may face challenges with the president-elect’s health policy choices. Robert F. Kennedy Jr., a vaccine skeptic without medical training, has been nominated for health secretary, sparking industry alarm.

For the Centers for Disease Control and Prevention, Trump selected Dr. Dave Weldon, a former congressman who has raised doubts about vaccines. Meanwhile, Dr. Mehmet Oz, a television host with limited bureaucratic experience, was chosen to head the Centers for Medicare and Medicaid Services, sparking concerns about his ability to oversee healthcare programs impacting over 150 million Americans.

These selections contrast sharply with Trump’s first term when appointees held conventional experience and ties to major drug companies. Industry officials are worried about potential disruptions to vaccine distribution and drug approval processes, along with Kennedy’s criticism of pharmaceutical prices and safety practices. His comments have led to temporary declines in vaccine and biotech stocks, as investors fear revenue losses from reduced vaccination rates.

Kennedy’s stance against certain vaccines, notably those accounting for a significant portion of companies like Merck’s revenue, could have substantial financial implications. Moreover, his views on the Food and Drug Administration bring uncertainty, as the agency’s relationship with the drug industry is pivotal.

On the other hand, Trump’s proposed FDA leader, Dr. Martin Makary, aligns with the scientific consensus on vaccine safety, providing some relief to pharmaceutical executives. With the industry’s ongoing anticipation of Trump’s impact, hopes rest on potential policy reversals that could favor the industry, such as Medicaid drug price negotiations. As the administration transition progresses, drug companies navigate the challenges of new leadership and its implications for their business.