Shares of some U.S. biotechnology companies including Moderna (MRNA) plunged on Monday after reports that the top vaccine official at the U.S. Food and Drug Administration (FDA) had resigned, fueling concerns that it will lead to a slower approvals process for new drugs.
Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, will leave April 5th, the Wall Street Journal and other media outlets reported on Friday.
Marks played a central role in the development of COVID-19 vaccines during President Donald Trump’s first term in the White House. However, it was reported that he had left his position at the FDA due to what he believes to be the “misinformation and lies” perpetrated by Robert F Kennedy Jr, the head of the Health and Human Services (HHS) department and known vaccine skeptic.
Shares of vaccine maker MRNA plunged 10% in premarket trading, while Taysha Gene Therapies (TSHA), Solid Biosciences (SLDB) and Sarepta Therapeutics (SRPT), which are all developing gene therapies to treat rare conditions, also declined.
According to a note seen by Reuters, Truist Research analyst Joon Lee said the resignation “could put some pressure on companies whose drugs are currently, or planned to be, under review by (the FDA).”
The resignation also after Kennedy announced plans to restructure the HHS involving 10,000 job cuts, including 3,500 at the FDA.
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