AstraZeneca shares are down just over 2% and GSK nearly 4%, closely mirroring the declines seen in their US-listed counterparts after the US Food and Drug Administration appointed Vinay Prasad as head of its Center for Biologics Evaluation and Research.
Prasad, an oncologist and outspoken critic of both FDA leadership and aspects of the pharmaceutical industry, is expected to bring heightened scrutiny to the approval process for biologics, vaccines, and gene therapies.
The appointment rattled the biotech and pharmaceutical sectors, with investors concerned that Prasad’s critical stance on expedited drug approvals and vaccine mandates could signal a tougher regulatory environment ahead.
This sentiment triggered a broad sell-off in US-traded shares of major drugmakers and gene therapy developers, and the declines quickly spread to London-listed stocks like AstraZeneca and GSK.
Market analysts note that Prasad’s history of challenging industry norms and calling for more rigorous clinical evidence may lead to longer approval timelines and increased uncertainty for companies developing innovative therapies.
As a result, both AstraZeneca and GSK are under pressure as investors reassess regulatory risks and future growth prospects in light of this significant leadership change at the FDA.