BMO Capital Markets has reported a positive reaction from the BioPharma sector following President-elect Donald Trump’s appointment of Martin Makary as FDA commissioner. Investors are hopeful that Makary’s appointment will help reduce industry uncertainty.

On the other hand, Trump’s nomination of Dave Weldon as the director of the Centers for Disease Control and Prevention (CDC) has stirred concerns, primarily due to the former Florida congressman’s contentious stance on vaccinations.

Trump recently announced the nomination of Marty Makary, a surgeon and author, to head the world’s leading drug regulation body, the FDA. He also named Dave Weldon, an ex-congressman and medical doctor, for the role of CDC director.

The nomination of Makary is seen as a positive development for the BioPharma sector, which suffered significant losses earlier in the year when Robert F. Kennedy Jr was nominated to lead the Department of Health and Human Services (HHS), according to BMO analyst Evan David Seigerman.

In the week following Kennedy’s nomination, the SPDR S&P Biotech ETF (XBI) saw an 11% drop. However, the market anticipates that Makary, with his healthcare background and public engagement on crucial issues, will be a valuable asset for the FDA. His advocacy for patient-centric care and evidence-based medicine aligns with the long-term interests of BioPharma, especially regarding regulatory reforms and approval procedures.

Dr. Makary is expected to bring a more balanced approach to running the FDA, as he has extensive knowledge of the U.S healthcare system and supports evidence-based medical interventions, Seigerman noted.

However, the nomination of Dave Weldon to lead the CDC has ruffled feathers in the public health sector due to his skeptical views on vaccinations. As a congressman, Weldon was a vocal critic of childhood immunizations and questioned the safety of the HPV vaccine, Gardasil, aligning himself with the wider anti-vaccine movement.

In addition, Trump has selected Janette Nesheiwat, a family medicine doctor and Fox News contributor, as surgeon general. Nesheiwat, who provided medical commentary during the COVID pandemic and was a participant in Trump’s opioid summit, is expected to concentrate on public health issues such as the opioid crisis, Seigerman stated.