The US is expected to increase biodefense spending under Trump, says vaccine company Bavarian Nordic

Vaccine maker Bavarian Nordic expects the incoming Trump administration to boost biodefense funding despite the appointment of Robert F. Kennedy Jr., a vaccine skeptic, as health secretary, the company’s chief executive said on Friday.

Shares in European vaccine makers fell on Friday after US President-elect Donald Trump picked Kennedy, who has previously spread misinformation about vaccines, to head the top health agency.

“Vaccine skepticism was part of the first Trump administration,” said Bavarian Nordic CEO Paul Chaplin. Reuters in an interview.

“When I look back at his first administration, those were some of the most successful years in terms of public preparedness with the U.S. government,” he said.

Biodefense prepares for and responds to potential biological threats, from pandemics to potential biological warfare.

“The only thing I’ve ever seen with a Republican administration is that the biodefense business and funding goes up,” Chaplin said.

Bavarian Nordic is providing the US government with a freeze-dried version of its smallpox vaccine as part of America’s smallpox preparedness strategy. Its current contract with the US government expires in 2027, Chaplin said.

The company’s smallpox vaccine is also approved for mpox in some countries.

Chaplin said he is a little more concerned about how Kennedy will affect the spread of vaccine skepticism and sales for general vaccine programs, which include rabies treatment.

“It doesn’t help when you have a health minister who is a vaccine skeptic to get the public to get vaccinated,” Chaplin said.

Shares in Bavaria fell more than 16%, hurt by third-quarter results. Analysts at Sydbank and Kempen told Reuters that Kennedy’s candidacy also weighed on the stock.