A dental stock rises as RFK Jr. threatens to remove fluoride from America’s water
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The stock of a dental supply company jumped over 6% on Monday, driven by investor optimism over a potential rise in dental treatments if Robert F. Kennedy Jr.’s plan to eliminate fluoride from drinking water succeeds.
Henry Schein, Inc (HSIC+7.52%) shares increased four days after President-elect Donald Trump announced he would tap Kennedy to lead the Department of Health and Human Services, a position which requires Senate confirmation.
Kennedy has pledged to remove fluoride from the nation’s drinking water, citing spurious claims that it is bad for overall health despite its proven effects at reducing cavities.
“The thought here is RFK will bring to HHS a voice that is in favor of reducing, or eliminating, the amount of fluoridation that is added to drinking water,” Don Bilson, Gordon Haskett’s head of event-driven research, told clients on Monday, according to CNBC. “This will, in turn, lead to an acceleration of tooth decay and more dental visits.”
Shares of Henry Schein rose 5% in pre-market trading and then increased again after Reuters reported that activist investor Ananym Capital had plans to refresh the company’s board, cut costs, and manage succession planning.
Henry Schein increase comes amid “widespread selling across the healthcare landscape,” Bilson said. “Drugmakers, contract research organizations, and health insurers all felt the quake. Rather than stop there, the damage spilled into packaged foods. And advertising.”
Bilson added that despite the short-term market moves, many of Kennedy’s changes could take years to be implemented.
Kennedy, who first ran as a Democrat in the primary against President Joe Biden, then switched to run as an independent before endorsing Trump, has been a prominent anti-vaccine activist. He also has raised concerns about the control of the pharmaceutical industry.
“For too long, Americans have been crushed by the industrial food complex and drug companies who have engaged in deception, misinformation, and disinformation when it comes to Public Health,” Trump said Thursday when announcing his choice to nominate Kennedy.
