In a move that could impact vaccine-makers like Merck & Co. Inc. (NYSE: MRK), GSK plc (NYSE: GSK), the U.S. government has decided to massively reduce the number of vaccines it recommends for every child.
The Trump administration announced on Monday that it would be changing the federal vaccine schedule. The change will not cause any families to lose vaccine access or insurance coverage, though.
President Donald Trump, on Truth Social, announced that the required vaccines have been reduced from 72 to 11 for the most serious diseases, while also allowing parents to opt for all vaccines.
The Department of Health and Human Services (HHS) said the U.S. was an "outlier" for both the number of childhood vaccines administered and the number of doses recommended, leading the agency to revise its guidance in an effort to rebuild public trust by focusing only on the most essential vaccinations for children.
The Centers for Disease Control and Prevention (CDC's) new policy removes routine vaccine recommendations for several childhood immunizations, such as rotavirus, COVID-19, influenza, meningococcal disease, and hepatitis A and B, shifting decisions to parents in consultation with healthcare providers.
The overhaul is the latest change made under the Trump administration, spearheaded by Health Secretary Robert F Kennedy Jr, who has long been skeptical of vaccines.
Vaccine Panel Shift Raises Safety Concerns
The development comes after vaccine makers, in December, expressed concern over the U.S. advisory panel's decision to remove the long-standing recommendation for a birth-dose hepatitis B vaccine.
Merck, the producer of Recombivax HB, warned the move could put infants at risk of chronic infection, liver cancer, and death, while GSK emphasized its confidence in the science behind its vaccine, Engerix-B, and awaited the CDC's formal adoption to evaluate the impact.
This decision also comes amid a time of increased scrutiny on vaccine safety and efficacy. The FDA's top vaccine regulator, Vinay Prasad, recently proposed stricter rules for vaccine approval, citing alleged child COVID shot deaths. This has sparked concerns in the healthcare and biotech sectors, potentially impacting vaccine makers and investors.