Shares of major US drugmakers plunged Monday after reports surfaced that the FDA’s leading vaccine official was forced out as part of a shakeup at federal health agencies ordered by the Trump administration.
Investors have grown increasingly anxious about President Trump’s proposed tariff expansions, fearing they may now encompass pharmaceuticals, a sector which has been historically exempt from such policies.
Drugmakers have also grown concerned over plans by newly installed Health and Human Services Secretary Robert F. Kennedy Jr. to significantly reorganize federal health institutions.
Kennedy, previously an environmental attorney, has consistently voiced skepticism over vaccine safety and effectiveness, sparking controversy within the public health community.
Peter Marks, who played a key role during Trump’s first term in developing COVID-19 vaccines, will leave effective Saturday, according to his resignation letter, which was first reported by the Wall Street Journal on Friday.
Marks explicitly criticized Kennedy’s position on vaccines in his letter.
On Monday, the S&P 500 biotechnology exchange-traded fund fell by more than 4%.
“It’s no secret that biotech has been under immense pressure recently given broader macro issues; this unfortunate update does nothing to reassure investors or provide relief,” Evan Seigerman, an analyst at BMO Capital Markets, told Reuters.
Companies heavily invested in vaccine development faced sharp declines, with Novavax falling more than 8% on Monday and BioNTech tumbling 4%.
Gene therapy firms experienced even steeper losses, including a nearly 30% plunge by Taysha Gene Therapies, a 14% fall for Solid Biosciences and Sarepta Therapeutics dropping 9%.
The reshaping of federal health agencies under Kennedy may involve significant personnel cuts, reportedly affecting thousands of federal employees.
Sources familiar with the matter revealed that Marks was offered the choice to resign voluntarily or face dismissal by an official from the HHS.
Marks, who also held the title of director of the FDA’s Center for Biologics Evaluation and Research, has long championed initiatives to accelerate the approval of treatments for rare diseases and gene therapies — making his exit particularly unsettling for biotech investors.
“Given Dr. Marks’ influence on the development of biologics and uncertainty as to who will replace him and how his legacy might continue, his departure will create a significant near-term overhang,” said Matt Phipps, an analyst with William Blair.
Marks’ resignation comes about two months after the exit of Patrizia Cavazzoni, the head of FDA’s drug evaluation unit.
Neither Marks nor representatives from the HHS responded to requests for comment on Monday.
David Geier, a prominent figure within the anti-vaccine community known for influencing Kennedy’s stance on vaccine safety and autism, has reportedly joined HHS to contribute to a study investigating a theory that vaccines might be linked to autism — a claim extensively disproven by scientific research.
Public health experts have expressed serious concern and surprise over Geier’s appointment, particularly given previous controversial decisions made by Kennedy, including the cancellation of a longstanding vaccine-related conference and the reduction of funding aimed at exploring reasons behind vaccine hesitancy.
With Post wires
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