CSL has seen its share price drop more than 4% after Robert F Kennedy Jnr was announced as the head of the US Health Department.
👉 Background: CSL is an Australian-based global biotech company that’s been around for over 100 years. It's best known for its flu vaccine as well as blood and plasma therapies.
👉 What happened: Now, CSL has seen its share price drop more than 4% after Robert F Kennedy Jnr was announced as the head of the US Health Department in Trump's administration. Kennedy has had some pretty strong views on vaccines in the past, including calling the COVID vaccines a “crime against humanity”.
👉 What else: As a result, many vaccine manufacturers have seen their share price whacked, including CSL, whose share price has dropped to its lowest since April this year. Investors are worried that Kennedy could bring uncertainty to the pharma and biotech sectors.
💡New political leadership can often create new winners and losers in the stock market, particularly in regulated industries and markets.
💡The biotech and pharmaceutical sectors are heavily reliant on government policies like drug regulatory approvals, government funding, and overall transparency. And, any shifts in policy can create volatility.
💡As we know, CSL aren’t the only company to be affected by this election. Tesla, which is in another regulated industry, has seen its share price jump nearly 40% since the Trump election win... while bitcoin has jumped 37% as well.
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