:max_bytes(150000):strip_icc()/GettyImages-2217714970-1c72c4619d274ff388e25b9718db2de9.jpg "FDA Plans to Tighten Vaccine Approvals Weigh on These Stocks")
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Key Takeaways
- Shares of several major vaccine makers lost ground Monday following a report U.S. vaccine approval rules could become stricter.
- An internal Food and Drug Administration memo last week reportedly linked COVID-19 vaccines with child deaths and proposed new regulatory measures.
A report that vaccine approvals could be set to get stricter is pressuring shares of major vaccine makers.
Moderna (MRNA), Novavax (NVAX), BioNTech (BNTX), and Pfizer (PFE) all lost ground Monday, following a report that an internal Food and Drug Administration memo last week proposed new regulatory measures.
An email to staff from Vinay Prasad, director of the FDA’s Center for Biologics Evaluation and Research, said that data from 2021 to 2024 showed at least 10 children died “after and because of receiving COVID-19 vaccination,” The New York Times reported late last week. Prasad also outlined plans in the email to propose a range of new oversight and review processes for vaccines, without naming any specific vaccine makers, according to the report.
The memo by Prasad, who was appointed in May following the abrupt resignation of Peter Marks over disagreements with Health Secretary Robert F. Kennedy Jr., has added fuel to expectations vaccine makers could face an increasingly challenging regulatory environment.
The Department of Health and Human Services, which oversees the FDA, did not respond to an Investopedia request for comment in time for publication.
Why This Is Significant
More demanding review processes could make it more difficult for vaccine makers to complete trials, make treatments, and bring them to market.
William Blair analysts told clients in a note Monday that they expect new regulatory restrictions would add to headwinds for Moderna, along with Pfizer and BioNTech.
Moderna, which derived the bulk of its revenue from its COVID-19 vaccine in the third quarter, was among the S&P 500’s biggest decliners Monday afternoon, with shares down nearly 7%. BioNTech dropped close to 5%, while Pfizer slid about 2%.
