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Drug industry treads carefully after stunning RFK Jr. nomination

The selection of Robert F. Kennedy Jr. to lead the Department of Health and Human Services (HHS) shocked the pharmaceutical industry.

But many industry insiders and outside lobbyists who spoke to The Hill said they were not prepared to oppose Kennedy outright, at least not yet.

Lobbyists said they had expected Mr. Kennedy to have some role in the administration, but were surprised by his selection as Secretary of Health and Human Services. They are now scrambling to figure out what damage Kennedy could do if confirmed.

“It's bad news that you can attack the heart of a science-based industry like this by saying nonsense and actually have the power to do something about it,” said one lobbyist who works for a pharmaceutical company. he said. “I think they're in a kind of 'holy mode' right now.”

Kennedy argues that ultra-processed foods, environmental toxins, and chemical additives are to blame for the rise in chronic disease in America. He wants to ban fluoridated water and increase access to raw milk.

Even before Mr. Kennedy was formally named to head the nation's top health agency, public health experts said he had been accused of aggravating vaccine hesitancy and pushing the government to support Mr. Kennedy's preferred views. They were concerned that funds could be directly injected into institutions.

Still, lobbyists said they are advising their clients to have the nomination fight among Senate Republicans. They preach patience because they don't want to risk spending political capital and ending up on President-elect Trump's bad side before he takes office.

“Many companies will be reluctant to get involved in politics,” said Richard Hughes IV, an attorney at Epstein Becker Green.

Hughes said it's not necessarily a given that Trump is industry-friendly, but Kennedy's approval adds a completely different element, making the government completely hostile to innovative medicines, especially vaccines. He said there is a possibility.

“The way President Trump has set himself up, you know, he’s basically saying: [Kennedy’s] I'm planning to eat carte blanche. So does he check himself? Will members of President Trump's party in Congress check him? ” Hughes said.

Another lobbyist representing drug companies said that while Mr. Kennedy's nomination was unexpected, the reaction from clients was not uniformly negative.

“We also have clients who are in different positions. 'This might be a good thing for us because you said something years ago that supported our position. , let’s hold the fire,’” the lobbyist said.

“And other people looking at the whip count will say, 'Will we have a vote on Senate finances to stop this in committee?'” So putting together a menu of options , then I guess we'll have to wait and see how the situation develops. ”

The general consensus is that Mr. Kennedy will likely not be confirmed and will be brought into the White House as an assistant to the president or “emperor,” one person said. But that didn't happen, clearly shattering the idea that the second Trump administration would move toward choosing a traditional Republican candidate.

Now, lobbyists are rereading the tea leaves.

“There are some [GOP senators] Some people are skeptical. I think most of them are moving away from voting for his confirmation, which would be…surprising,” one source said.

The Pharmaceutical Research Association of America, an influential trade group representing drug companies, did not mention Kennedy by name in a statement after President Trump formally nominated him as a candidate.

It noted the industry's importance as part of the American economy and highlighted how the group and industry can work together with the Trump administration “to further strengthen the innovation ecosystem and improve patient care.” .

It's unclear what Kennedy's priorities are as secretary, but he is a vaccine skeptic and has questioned the legitimacy of the entire regulatory process.

Kennedy, first as an independent presidential candidate and then as a surrogate candidate for President Trump, said federal health regulators were “sock puppets” in thrall to industry special interests.

In a pre-election social media post, President Kennedy said the Food and Drug Administration's “war on public health is coming to an end” and criticized those involved in blocking access to products such as raw milk and peptides. I told him this. Sunlight, ivermectin, and other controversial treatments need to be “packed.”

He also spoke negatively about the fees industry pays to fund the FDA's relatively rapid review of drugs and medical devices, saying the agency is too dependent on industry. Almost half of the agency's budget this year came from user fees.

Sources said one of the biggest concerns for drug companies is that HHS, run by President Kennedy, will try to change the fee system in some way.

But while there are bipartisan concerns about the role of user fees and their undue influence on the industry, current FDA Commissioner Robert Califf has previously said he would like to see the FDA fully funded by taxpayers. However, any fundamental changes or termination of the agreement would require a vote of Congress.

Still, even if Senate Republicans are unwilling to block Mr. Kennedy's nomination, there is little optimism among industry lobbyists that their party will keep the agency in check once Mr. Kennedy takes office.

“I think he needs support from Congress in order to have a major disruptive impact. And the question is how much lease can he get from Trump? If he gets some kind of asylum there, “If he can get the White House to step up to bat and twist his arm, he could probably have a bigger impact than we expect,” said one drug company lobbyist. spoke.

“Even if he doesn't, if he is left as a free-floating electron, Congressional resistance may strengthen his ideas and actions.”

President Trump is testing the loyalty of Republican senators from the start with his controversial selection of Cabinet nominees. They will need to decide where to draw the line to disagree with someone.

“RFK Jr., unless something crazy comes out with his revelations, I would say that…is his stance itself enough to prevent him from earning a spot on this list? So I don't really understand, right?''? '' said another official.

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