Medtech shouldn’t be greatly impacted by RFK Jr. at HHS, Wells Fargo says

Medtech shouldn’t be greatly impacted if vaccine critic Robert F. Kennedy Jr. is appointed as secretary of the U.S. Department of Health and Human Services, according to a note by Wells Fargo.

The investment bank noted that Kennedy’s reform ideas have largely focused on pharmaceuticals, pesticides and food, rather than medical technology. It noted, however, that makers of vaccine supplies such as syringes may be impacted if Kennedy’s views lead to a reduction in vaccinations.

Wells Fargo also pointed out that Kennedy has been critical of the Prescription Drug User Fee Act, or PDUFA, which is used to help fund the FDA.

“It’s reasonable to assume that Mr. Kennedy may also target the Medical Device Fee and Modernization Act, or MDUFA, at some point,” Wells Fargo said. “However, eliminating MDUFA would require finding the funding for FDA elsewhere, which could prove difficult.”

While shares of vaccine makers fell significantly Friday over concerns about Kennedy’s potential appointment, shares of many of the leading medical device and supply makers moved higher in afternoon trading.

Seeing gains of at least approximately 2% were Fresenius (NYSE:FMS), Dexcom (NASDAQ:DXCM), Zimmer Biomet (NYSE:ZBH), Align (NASDAQ:ALGN), Stryker (NYSE:SYK), Medtronic (NYSE:MDT), Edwards Lifesciences (NYSE:EW) and Johnson & Johnson (NYSE:JNJ).