Trump's picks, especially Robert F. Kennedy Jr., raise concerns and impact healthcare stocks negatively.

From Investing.com: 2024-12-01 16:01:02

Healthcare stocks in the U.S. and Europe have dropped post-Trump’s win, as concerns grow over cabinet picks’ impact. U.S. healthcare ETF lags by 7%, European healthcare stocks by 1.5%. Robert F. Kennedy Jr.’s nomination for HHS has rattled pharmaceutical and biotech sectors due to his views on vaccines and obesity drugs.

Kennedy’s vaccine skepticism and criticism of obesity drugs raise concerns over regulatory obstacles. His anti-FDA policies stance alarms investors, though Barclays analysts believe translating his views into policies could be challenging. Medicare’s coverage of GLP-1 drugs is currently limited to patients with cardiovascular risks, requiring legislative changes for expansion under TROA.

Barclays sees commercial market, not Medicaid or Medicare, as the key growth driver for anti-obesity meds. Kennedy’s anti-vaccine history adds to investor skepticism, impacting stocks like Novo Nordisk and Sanofi. Barclays deems the selloff an overreaction, maintaining “overweight” ratings for both companies.

While the healthcare sector faces obstacles, some subsectors may benefit from clearer policies over time. Trump’s cabinet appointments, including Vivek Ramaswamy, contribute to regulatory uncertainty concerns among investors.



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