Biotech Stocks Slide After FDA Selects Prasad to Lead CBER
The FDA's decision to appoint Vinay Prasad, MD, MPH, to head its Center for Biologics Evaluation and Research (CBER) raised concerns over regulatory scrutiny as the biotech market dropped.
The FDA’s Center for Biologics Evaluation and Research (CBER) will have a new director, as Vinay Prasad, MD, MPH, will
The biotech sector reacted sharply to the news, as the XBI biotech exchange-traded fund fell by more than 6% on the day the announcement was made,
Days before the CBER decision, HHS Secretary Robert F. Kennedy Jr announced a policy requiring all new vaccines to be tested in
Still, experts warn that the new vaccine requirement could significantly slow the approval process for immunizations, which could especially hinder the timely deployment of essential public health tools. This policy shift, combined with the appointment of Prasad, appears to have widened the gap between federal regulators and key industry stakeholders. Many in the biotech and pharmaceutical communities remain concerned about how these changes will impact innovation and development pipelines moving forward.
Prasad has not been afraid to call out
The former academic oncologist has cultivated a wide following for his
Prasad’s imminent arrival in the FDA has prompted contrasting responses. Makary expressed confidence in the new director's ability to move CBER forward, aligning with his larger agenda to rebuild trust and transparency toward regulatory institutions. Meanwhile, stakeholders across health care and biotech industries anticipate changes with implications for drug approvals, regulatory policy, and public health strategies in the years ahead.
References
1. McKenzie H. Biotech stocks fall after FDA names Vinay Prasad to succeed Marks at CBER. BioSpace. May 6, 2025. Accessed May 7, 2025.
2. Chen E. Biotech stocks fall on Vinay Prasad news. STAT. May 7, 2025. Accessed May 7, 2025.
3. McKenzie H. HHS to require placebo-controlled trials for all new vaccines in ‘radical departure’ from past. BioSpace. May 1, 2025. Accessed May 7, 2025.
4. STAT staff. Vinay Prasad, in his own words, outlines the philosophy he’ll bring to the FDA. STAT. May 6, 2025. Accessed May 7, 2025.
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