Robert F. Kennedy Jr. cleared a key hurdle Tuesday after the Senate Finance Committee voted along party lines to send his nomination to the full chamber.
The panel voted 14 to 13 in favor of Kennedy's nomination. Kennedy, or RFK Jr., won a yes vote from Sen. Bill Cassidy, R-La., a physician and the panel's chair, who had voiced concern about Kennedy's earlier anti-vaccine stance.
In a post to social media platform X, Cassidy said he had "very intense conversations" with RFK Jr.
"With the serious commitments I've received from the administration and the opportunity to make progress on the issues we agree on like healthy foods and a pro-American agenda, I will vote yes," he said ahead of the vote.
The news is potentially negative for biotech companies developing vaccines. Moderna stock dropped 6.5% to 34.17. BioNTech stock lost 2.2% and closed at 117.14. Pfizer shares reversed from an early gain on a fourth-quarter beat, falling 1.3% to 25.87. GSK shares dipped a fraction.
"We see this evolving regulatory environment as negative for primary care vaccine manufacturers — both on a fundamental and sentiment basis (MRNA most exposed) — and net positive for rare/severe disease companies," Leerink Partners analyst Mani Foroohar said in a report.
RFK Jr. And Vaccines
RFK Jr. has said he's not going to "take vaccines away from anybody."
But he still can't escape his earlier anti-vaccine stance, says Web Golinkin. Golinkin has headed up six companies over the last 35 years, including FastMed and RediClinic.
"Even though it seems like he's been trying to distance himself from [his previous comments], it's pretty unavoidable," Golinkin told Investor's Business Daily. "Parents' skepticism about vaccines could be a huge public health problem. He says he's not anti-vaccine, he says he's pro-safety. But it seems like he's really somewhat antiscience and that could be a huge problem."
Golinkin expects RFK Jr. to dig deeper into the vaccines issue.
"I don't think he's going to find what he's looking for," he said. "But I think it's naive to think he's not going to try."
Vaccine Development Is Rapid
In fact, there's little Kennedy can do to impede vaccine development.
Regulators at the Food and Drug Administration are in charge of evaluating the safety and effectiveness of drugs, vaccines and medical devices. If confirmed, Kennedy will head up the Department of Health and Human Services, which oversees the FDA. But he won't be looking at applications for new vaccine approvals.
Doug Drysdale, chief executive of Cybin, says some vaccines must be developed rapidly. Companies revamp their flu and Covid vaccines annually, for example, to keep up with viral mutations.
"He has said publicly that regardless of his view on some vaccines, he doesn't want to stop people getting them if they want them," he told IBD. "And I can't see the FDA or WHO or the U.N. or any elite public policy, public health body is going to stop developing or supporting development of vaccines."
'Energy And Enthusiasm'
Drysdale expects RFK Jr. to have the "energy and enthusiasm" to improve some processes.
That's a benefit to his biotech company. Cybin is developing synthetic modified versions of psychedelic drugs. The company is testing the active ingredients found in mushrooms and ayahuasca to treat depression and anxiety, respectively. Its antidepressant is in Phase 3 testing.
Kennedy has spoken publicly in favor of psychedelic drugs, including about his son's experience with hallucinogenic ayahuasca.
"When I heard about him being nominated, I just saw it as something that's not negative," Drysdale said. "He won't put the brakes on this research. Now, there's the potential he could help it. The more I hear him speak about this, the more positive I'm feeling."
Cybin stock has generally fallen since mid-2021, however. Shares have a low Relative Strength Rating of 18 out of a best-possible 99. This means the biotech stock ranks in the bottom fifth of all stocks when it comes to 12-month performance, according to IBD Digital.
RFK Jr. Is Unconventional
Dr. Yan Katsnelson, a cardiac surgeon and chief executive of USA Clinics Group, is similarly positive on RFK Jr.'s nomination. He acknowledges Kennedy is somewhat unconventional as a candidate.
"He is not a doctor, he doesn't have a license, he won't change things, he will not prescribe medication," Katsnelson said in an interview.
Instead, RFK Jr. will ask questions. He won't rely on decades-old information, Katsnelson said.
Where Katsnelson is particularly enthusiastic, however, is in the area of prevention. Kennedy has made his stance on ultra-processed foods well known. During the first confirmation hearing, Kennedy said he would like to "fix our food supply."
"We meet patients too late," Katsnelson said. "He wants to meet the problem before it arrives. Make food healthier. Do what we can to prevent disease. It goes against the business of medicine. The business of medicine is to treat patients as long as possible. To produce revenue."
