Biotech Stocks Tumble Amid Leadership Shakeup

U.S. drugmaker shares fell after the FDA's top vaccine official, Peter Marks, was forced to resign. Concerns grow over possible tariffs on drugs and changes at federal health agencies under Secretary Robert F. Kennedy Jr. Marks' exit adds uncertainty to the biotech sector already under pressure.

Shares of U.S. pharmaceutical companies declined significantly on Monday following reports of Peter Marks, the Food and Drug Administration's top vaccine official, being compelled to resign. This high-profile exit comes amidst the Trump administration's attempt to revamp federal health agencies. The biotech sector has been struggling since Trump's return to the White House.

Investors are anxious about potential tariff plans under the Trump administration that might affect drugs, historically exempt from such levies. The appointment of Robert F. Kennedy Jr as Secretary of Health and Human Services, known for his skepticism about vaccines, compounds these concerns. Marks, integral to developing COVID-19 vaccines during Trump's first term, will officially leave his post on April 5.

The decision by Marks, reported by media outlets last Friday, sent ripples through the market, with the S&P 500 biotech ETF declining 2.8% in premarket action. Biotech stocks such as Moderna and Pfizer suffered as the resignation deepened investor uncertainty. Speculation over potential shifts in vaccine policy under Kennedy's direction adds further worry to stakeholders.

(With inputs from agencies.)