Biotech stocks took a hit after the sudden resignation of Dr. Peter Marks, head of the FDA’s Center for Biologics Evaluation and Research (CBER). Shares of Moderna (MRNA), Novavax (NVAX), and Sarepta Therapeutics (SRPT) each fell over 8% following the news. RBC Capital analyst Brian Abrahams warned that Marks’ exit could lead to disruptions at the FDA, affecting drug approvals and regulatory flexibility.
RBC Capital Flags Industry Risks
Marks’ resignation has sparked concerns about the FDA’s direction, especially under Health and Human Services Secretary Robert F. Kennedy Jr. Known for his controversial stance on vaccines, Kennedy has repeatedly questioned their safety and effectiveness, drawing sharp criticism from health experts. The analyst believes Marks’ departure will have a negative impact on the biotech sector, extending beyond vaccines.
Marks had pushed for faster and more flexible drug approvals, especially for rare disease treatments like gene therapies. His departure raises concerns about more FDA staff leaving, possibly due to frustrations with Kennedy’s leadership. RBC warns this could slow drug approvals and create uncertainty, putting pressure on biotech stocks.
RBC says the companies most at risk include Sarepta, Legend Biotech (LEGN), Gilead (GILD), Regeneron (REGN), Vertex (VRTX), and Moderna, among others. The uncertainty surrounding FDA leadership could weigh on their stock performance.
Beyond RBC, analysts at Cantor Fitzgerald have also raised concerns. They have urged the administration to reconsider Kennedy’s appointment, warning that his leadership could disrupt public health policy and delay critical drug approvals.
Which Stock Is the Better Buy?
Turning to Wall Street, out of the seven stocks mentioned above, analysts think that SRPT stock has the most room to run. In fact, SRPT’s average price target of $177.56 per share implies more than 161% upside potential. Meanwhile, analysts expect the least from VRTX stock, as its average price target of $498.77 equates to a gain of 2.88%.
