Tuesday, 19 November 2024 Reading time : 2 minutes

Donald Trump may not be in office yet, but the president-elect is already making headlines with his appointments. Shares in pharmaceutical companies around the world fell after Trump announced last Thursday that he would nominate Robert F. Kennedy Jr. as secretary of the Department of Health and Human Services. The 70-year-old Republican is considered a vaccine sceptic and has been criticised in the past for spreading false medical claims, reports Reuters. 

Since Kennedy's name has been floated, shares in vaccine makers Moderna and Biontech have been on a downward spiral. On the last two trading days of last week, the shares of both companies lost more than 10% each. Pharmaceutical giants Pfizer, Glaxo Smith Kline and Sanofi also fell more than the market as a whole.

Swiss healthcare stocks also reacted to the announcement with losses, with pharmaceutical supplier Lonza topping the list of SMI laggards. The Visp-based company had produced the Covid-19 vaccine for Moderna, but lost the contract last September. 

Second-tier contract manufacturers also saw their shares fall. These include Siegfried: the Zofingen-based company filled and packaged Biontech/Pfizer's Corona vaccine during the pandemic. Ypsomed, a medical technology company that produces injection systems for drugs, lost more than 10% of its value on Thursday and Friday. 

As the top official of the US Department of Health and Human Services, Kennedy would be responsible for more than 80,000 employees, including the Food and Drug Administration, the National Institutes of Health and the Centers for Disease Control and Prevention. However, before the question of what Kennedy will do and how it will affect the healthcare system can be answered, he will have to be confirmed by the US Senate, where Republicans will hold a slim majority next year. 

Until it is clear who will be at the helm of the US healthcare system, uncertainty in the healtcare sector is likely to continue.

Barrier Reverse Convertible on Swiss Pharmaceutical Suppliers
10.00% p.a. BRC on Lonza, Siegfried and Ypsomed
Barrier: 70%
Valor: 139 434 092

Barrier Reverse Convertible on Vaccine Manufacturers
20.00% p.a. BRC on Moderna and Biontech
Barriere: 49%
Valor: 139 433 943

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