Vaccine Skepticism Looms Over Bavarian Nordic Amid U.S. Administration Shift

Bavarian Nordic foresees increased U.S. biodefense funding despite Robert F. Kennedy Jr.'s nomination as health secretary sparking vaccine skepticism. CEO Paul Chaplin anticipates a positive impact on biodefense business under the Trump administration, despite recent stock decline due to lower profits and Kennedy's nomination.

Bavarian Nordic, a Danish biotechnology company, anticipates a surge in U.S. biodefense funding with the new administration, despite worries over the nomination of Robert F. Kennedy Jr. as health secretary potentially fueling vaccine skepticism. CEO Paul Chaplin shared these insights with Reuters on Friday.

President-elect Donald Trump announced the selection of Kennedy, known for spreading vaccine misinformation, to head the nation's top health agency. Chaplin expressed concerns about convincing the public to take vaccines under a skeptical health secretary. Nevertheless, he expects an increase in biodefense funding for pandemic preparedness, recalling successes from Trump's first term.

Bavarian's shares fell over 16% following lower-than-expected core profit results for the third quarter, coupled with a decline in 2025 orders. Analysts at Sydbank and Kempen noted that Kennedy's nomination further pressured the stock.

(With inputs from agencies.)