Pharma stocks tumble after appointment of Dr. Vinay Prasad to key FDA post
By ramontomeydw // 2025-05-09
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  • Pharmaceutical stocks, including Moderna (-13 percent), Novavax (-7.2 percent) and Sarepta Therapeutics (-27 percent), dropped sharply following Dr. Vinay Prasad's appointment as director of the FDA's Center for Biologics Evaluation and Research (CBER).
  • A hematologist-oncologist and vocal critic of COVID-19 vaccines, Prasad has opposed vaccine mandates for children, criticized "COVID-19 alarmism" and questioned the FDA’s accelerated approval process under his predecessor, Dr. Peter Marks.
  • Prasad's appointment follows Marks' resignation in March and aligns with the Trump administration's push for regulatory reform, including skepticism of mainstream vaccine policies.
  • Analysts warn Prasad's "anti-industry" reputation could slow expedited drug approvals, particularly for gene therapies, raising uncertainty for biotech innovation and investor confidence.
  • The leadership change signals a move toward greater scrutiny of pharmaceutical practices, testing the FDA's credibility amid allegations of corporate favoritism and potential polarization over public health policy.
Stocks of pharmaceutical companies nosedived following the appointment of Dr. Vinay Prasad to a key position at the Food and Drug Administration (FDA). FDA Commissioner Dr. Marty Makary announced Prasad's appointment as director of the agency's Center for Biologics Evaluation and Research (CBER) Tuesday, May 6, in an internal email later quoted by media outlets. Prasad took over the post vacated by his predecessor, Dr. Peter Marks, who stepped down in March following disagreements with Health Secretary Robert F. Kennedy Jr. over vaccine policy. The new CBER head – a hematologist-oncologist and professor at the University of California, San Francisco – has authored over 500 academic papers and two books critical of medical reversals and flawed research. He is also a staunch critic of the Wuhan coronavirus (COVID-19) vaccines, noting that children don't need the injections and they shouldn't be required in schools. Prasad has also denounced the media for stoking "COVID-19 alarmism" and overstating the threat of SARS-CoV-2. (Related: Study: 1 in 100 teens developed heart inflammation after second Pfizer mRNA injection.) Prasad also criticized the FDA's accelerated approval process under Marks, who was a staunch advocate for rapid vaccine authorization during the COVID-19 pandemic. Even Emily Kopp of the Daily Caller couldn't help but point out that "Marks' No. 1 critic just took his job." Makary's announcement sent shockwaves throughout the stock market, triggered a sharp sell-off in vaccine and biotech stocks. Shares of mRNA vaccine maker Moderna dropped as much as 13 percent on Tuesday, while that of Novavax dropped by 7.2 percent. Sarepta Therapeutics, a company specializing in gene therapies, saw its stocks nosedive by as much as 27 percent.

From Kennedy to Prasad: How Trump's health policy shakeup is crushing Big Pharma stocks

This wasn't the first time pharmaceutical industry stocks plunged following a shakeup in the FDA, as Marks' abrupt resignation on March 28 triggered a similar downturn. Moderna stocks plunged by 12 percent, while Novavax stocks dropped by 10 percent. Shares of BioNTech – Pfizer's partner in developing its COVID-19 injection – dropped by 5.8 percent that day. Prasad's skepticism aligns with the second Trump administration's push for regulatory reform, including proposed cuts to global health initiatives and a reduction in the federal workforce. The new CBRE head's appointment underscores the growing influence of critics within federal health agencies – a trend that began with Kennedy's controversial nomination and subsequent confirmation to the Department of Health and Human Services. The market reaction was immediate, with analysts warning of broader implications for the industry. Jared Holz of Mizuho Securities noted Prasad's "anti-industry" stance as a key concern, particularly for companies reliant on expedited approvals. Historically, the FDA has balanced industry collaboration with public health oversight, but recent leadership changes signal a shift toward skepticism of mainstream vaccine policy. Analysts warn that uncertainty around drug approvals could stifle innovation, particularly in gene and cell therapy. As the FDA enters a new era under Prasad's leadership, the pharmaceutical industry faces heightened scrutiny – and investors are bracing for further turbulence. The agency's credibility, already strained by allegations of corporate favoritism, may now be tested by a director who has built his career challenging conventional medical wisdom. Whether this shift leads to greater transparency or deeper polarization remains to be seen. Watch Dr. Pam Popper sharing some common sense commentary from Dr. Vinay Prasad in this clip. This video is from the Wellness Forum Health channel on Brighteon.com.

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Vaccine stocks plummet after RFK Jr. nominated as HHS secretary. Heads of vaccine makers Moderna, BioNTech included in list of COVID-19 billionaires. Pharmaceutical CEOs panicking over Trump victory as RFK Jr. prepares to overhaul corrupt FDA. Sources include: ZeroHedge.com 1 Bloomberg.com ZeroHedge.com 2 Brighteon.com
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