Proactive Investors - Almost £7 billion was wiped from the combined market values of GSK (LON:GSK) PLC and AstraZeneca PLC (LON:AZN) on Friday after Donald Trump unveiled his new health secretary.
President-elect Donald Trump announced the controversial appointment of Robert F Kennedy Junior, an outward anti-vaxer, on Thursday.
Trump said the new Department of Health and Human Services head had the “most important role” in any administration.
“[He] will play a big role in helping ensure that everybody will be protected from harmful chemicals, pollutants, pesticides, pharmaceutical products and food additives,” Trump added.
AJ Bell (LON:AJBA) analyst Russ Mould noted investors had been spooked by the appointment of a “vaccine-sceptic” to the role.
“The impact on the sector is hard to judge fully at this stage but, at the very least, it will cause a good deal of uncertainty,” he said.
Jab-maker GSK subsequently fell 4.5% on the news, while peer AstraZeneca dropped 2.8%, equating to billions of pounds in market value.
Pharmaceutical (TADAWUL:2070) companies elsewhere across the world also faced a blow on the news.
Germany’s Roche (LON:0QQ6) and Demark’s Novo Nordisk (CSE:NOVOb) were among those to drop, as Moderna Inc (BMV:MRNA) and Pfizer Inc (NYSE:PFE) slumped 4% and 6% respectively across the Atlantic.