Moderna stock slipped Tuesday after Health Secretary Robert F. Kennedy Jr. fired all 17 members of a Centers for Disease Control and Prevention committee in charge of making immunizations recommendations for the U.S.
In a news release, the Department of Health and Human Services, which Kennedy leads, described the move as a "bold step in restoring public trust." The CDC's Advisory Committee for Immunization Practices makes significant decisions about who receives which vaccines, including children, and when those vaccines should be administered.
"The public must know that unbiased science — evaluated through a transparent process and insulated from conflicts of interest — guides the recommendations of our health agencies," Kennedy said in a statement.
Vaccine stocks fell late Monday when the news broke, and were mixed at Tuesday's close. Shares of Pfizer jumped 1.4% to 24.30, while shares of BioNTech fell 1.9% to 106.89 and Novavax skidded 2.8% to 7.20. Moderna stock shed 1.6%, ending the day at 27.68. All four are known for their Covid vaccines.
Meanwhile, Sanofi and GSK shares advanced a fraction and 1.1%, respectively.
Vaccine Stocks Mixed After ACIP Gutted
According to the HHS, all 17 members of the ACIP were appointed by the Biden administration. That includes 13 appointed in 2024, alone. Those appointments would have prevented the Trump team from choosing a majority of the committee until 2028, HHS said.
Kennedy said a "clean sweep is necessary to reestablish public confidence in vaccine science." He added: "The committee will no longer function as a rubber stamp for industry profit-taking agendas."
Leerink Partners analysts say the ACIP overhaul creates increased risk for vaccine makers. At best, it could take some time for the new members to ramp up. That could delay recommendations for less controversial products, like Merck's recently approved antibody treatment to prevent respiratory syncytial virus, or RSV, in children.
"At worst, the committee could upend current recommendations for novel and existing vaccines," they said.
The news is particularly troublesome for Moderna. The Food and Drug Administration is expected to make a decision on expanding approval for its RSV vaccine on Thursday.
Today, Moderna's mResvia is approved for adults age 60 and older. But the CDC advisors have only recommended it for adults age 75 and older, and adults ages 60 to 74 with a high risk of developing severe RSV. Moderna is hoping to gain approval for high-risk adults aged 18 to 59.
But there's a risk the new CDC advisors could narrow the recommended population — or even decline to recommend the vaccine.
Kennedy's Controversial Vaccine History
Kennedy has a long history of questioning the safety of vaccines. In his time at the HHS helm, Kennedy's FDA changed the guidelines for testing Covid vaccines and the CDC dropped the recommendation that children and pregnant women receive them. A public feud also saw the departure of Peter Marks, the longtime director of the FDA's vaccines division.
"While the makeup of a reconstituted ACIP is (to be determined), new members will likely be sympathetic to at least some of RFK's beliefs regarding alleged dangers of vaccines (the disproven link to autism, for example)," Leerink analysts said. "Since today's statement criticizes that the committee 'has never recommended against a vaccine,' it suggests that ACIP could be more critical of vaccines."
But William Blair analyst Myles Minter said it's promising that the ACIP remains in place. There was always a chance HHS could dismantle it entirely. Leerink analysts noted U.S. insurers have to pay for vaccines recommended by the ACIP without restriction or cost-sharing.
"ACIP meetings have been followed by investors due to their influence on recommendations that ultimately impact a given vaccine's commercial opportunity," Minter said.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
