Robert Kennedy Jr Axes Entire CDC Vaccine Panel To 'Restore Public Trust' — Pfizer, Moderna, Other Biotech Stocks Drop In After-Hours Trading

On Monday, the U.S. Secretary of Health and Human Services, Robert F. Kennedy Jr., decided to fire all 17 members of the Advisory Committee on Immunization Practices, a panel that plays a key role in shaping U.S. vaccine policy.

What Happened: In an op-ed published in the Wall Street Journal, Kennedy said that this clean sweep was necessary in order to “re-establish public confidence in vaccine science.” He argued that the current panel had become a “rubber stamp for any vaccine” and was compromised by “persistent conflicts of interest.”

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Kennedy, who has been a vocal anti-vaccine activist even before becoming the country’s top health official, hasn’t mentioned who will be appointed to the panel, but has said that the panel would convene within two weeks in Atlanta, according to a report from the Associated Press.

The ACIP advises the CDC on immunization schedules and insurance coverage guidance, and its recommendations thus carry immense sway on pharma and biotech stocks, especially those with a sizable vaccine portfolio.

Since the announcement was made, most stocks in the sector are in the red in after-hours trade,

Why It Matters: Kennedy has taken several steps against vaccination mandates in recent weeks, starting with the removal of COVID vaccines from the recommended immunization schedule for healthy pregnant women and children.

Around the same time, the Trump administration terminated a $600 million contract with Moderna for developing an mRNA-based bird flu vaccine, which was part of former President Joe Biden’s pandemic preparedness efforts.

Dr. Matthew Ferrari of the Pennsylvania State University criticized the health secretary, saying that “If you restrict access, you necessarily restrict choice,” referring to the removal of COVID vaccines from the CDC schedule.

Price Action: The iShares U.S. Pharmaceuticals ETF tracks several of the heavyweights across pharma and biotech. On Monday, the fund was up 0.24%, trading at $66.45 per share, but is now down 2.47% after hours.

The ETF is ranked in the 45th percentile according to Benzinga’s Edge Stock Rankings, and has a favorable price trend in the short term, but not so much in the medium and long term. Click here for deeper insights into the stock, as well as its alternatives.

Photo Courtesy: Joshua Sukoff on Shutterstock.com

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