Appointment of Robert F. Kennedy Jr. by President-elect Donald Trump to lead the nation’s largest health agency sent health care stocks tumbling last week.

Vaccine manufacturers such as Moderna (mRNA) fell over 5%, while larger companies such as Pfizer PFE (FE) decreased by approximately 2%. Some Wall Street analysts said the slide it was an overreaction and that it is too early to tell if or how much of an impact Kennedy might have on the health care sector, as little is known about the actual policies of the controversial election and he has yet to be confirmed by the US Senate.

If confirmed as secretary of Health and Human Services, Kennedy would oversee the US Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention (CDC) and head the Centers for Medicare and Medicaid Services (CMS).

JPMorgan healthcare analyst Chris Schott said in a note to clients that the sector faces “a period of maximum uncertainty” until the cabinet post is filled and more is known about Kennedy. But, Schott added, it also means that large-cap stocks as a whole are currently trading at a 35% discount to the S&P 500, leaving room for future trades up rather than down .

Mizuho health expert Jared Holz said in a note to clients that he agrees with some of the big picture issues Kennedy identified, such as America’s obesity epidemic and the dangers of ultra-processed foods.

“The country should be much healthier than it is and there is a lot of room for improvement, including nutrition, food production, consumption, etc. This is a very complicated subject and always has been,” Holz said.

Here’s some of what we know about Kennedy’s views on major health topics.

• Vaccines: Known as an anti-vaxxer, Kennedy has questioned the need to vaccinate children and refused to receive a vaccine against COVID-19, worrying some Wall Street analysts about his possible effect on the vaccine industry and how it could influence the childhood vaccination schedule as well. as a regulatory process for testing and approving vaccines and other treatments. There is also speculation that he and Trump’s government efficiency members Elon Musk and Vivek Ramaswamy could destroy the FDA. Vaccine stocks have been affected most on the news of Kennedy’s nomination, despite the fact that he previously said he didn’t “take” anyone’s vaccines.

• GLP-1s: RFK said he doesn’t think weekly shots are the answer to the nation’s obesity problem. It’s unclear whether it could derail GLP-1 makers’ current efforts to gain Medicare coverage, which is currently not allowed for obesity. The companies are studying the drugs’ impact on obesity-related diseases like heart disease and sleep apnea, which are covered by Medicare and would therefore open up federal dollars for the buyout. A recent report showed Medicaid, which would also be under Kennedy’s control, contributed significantly to sales of injectables compared to employer-sponsored and commercial insurance plans. Some analysts fear that Kennedy’s positions could limit drug access and coverage levels, potentially impacting the fortunes of market leader Eli Lilly (LLY) and Novo Nordisk (NGOs). Holz, however, said he “still believes that GLP-1 will be the largest therapeutic category by a wide margin, despite comments from RFK that Americans should use other non-drug methods to lose weight “.

• Drug price: With oversight of the Centers for Medicare and Medicaid Services, Kennedy would have a chance to negotiate more or less aggressively with pharmaceutical companies than the Biden administration. That is, of course, if the Trump administration chooses to continue exercising the new powers established by the Inflation Reduction Act (IRA). “President Trump will remain focused on this issue and may try to ‘get a better deal’ through negotiations with the IRA than the Biden administration,” Leerink Partners said in a note.

• Food regulations: Kennedy talked about prioritizing the regulation of ultra-processed foods. Studies show that these foods contribute to obesity in the country. It’s a policy current FDA Commissioner Robert Califf has already spoken aboutand the agency sought to issue new labeling rules as well as better research on the impact of these foods. Although he is more concerned with food stocks than health care, the issue is related to his stance on obesity and GLP-1. It is not clear how Kennedy will address this issue.

Anjalee Khemlani is the senior health reporter at Yahoo Finance, covering all things pharma, insurance, care services, digital health, PBMs, and health policies and politics. That includes GLP-1, of course. Follow Anjalee on most social media platforms @AnjKhem.

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