Robert F. Kennedy Jr. attends a campaign event for Republican presidential candidate and former U.S. President Donald Trump on November 1, 2024 in Milwaukee, Wisconsin, USA.
Joel Angel Juarez | Reuters
dental care suppliers henry schein President-elect Donald Trump’s pick for Secretary of Health and Human Services, Robert F. Kennedy Jr., may recommend removing fluoride from America’s water systems, leading to a boom in dental visits. Shares rose in Monday trading as investors bet that the stock would.
Henry Schein stock rose about 7.5%, marking its best day since 2022. Dentsply Sirona and Envista The session also rose.
Monday’s move comes as investors brace for public health changes under the second Trump administration. “President Trump will recommend that all water systems in the United States remove fluoride from public water,” Kennedy wrote on X before this month’s presidential election.
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Fluoride has long been shown to be an effective way to fight tooth decay. But the mineral has been at the center of a national battle, leading some communities to cancel plans that centered on putting it in public waters.
Mr. Kennedy must be confirmed by the Senate to take office, but market participants are already eyeing a group of stocks that make dental hygiene products as potential beneficiaries of his policies. That’s because removing fluoride from water will actually increase demand in the tooth cleaning industry as consumers look elsewhere to fight tooth decay, said Gordon Haskett.
An overview of Henry Schein Inc., which is building a distributor of healthcare products and services in 32 countries, photographed in Melville, New York.
Bruce Bennett Getty Images
“The idea here is that RFK will provide a voice to HHS in support of reducing or eliminating the amount of fluoride added to drinking water,” said Gordon Haskett, director of event-driven research. Don Bilson told his client. Monday memo. “This will accelerate tooth decay and increase dental visits.”
Henry Schein shares rose in afternoon trading after a Reuters report that activist investor Ananim Capital was pushing for changes at the company. The newly formed company, led by Charlie Penner and Alex Silver, believes it needs to revamp its board of directors and cut costs, among other things.
Henry Schein and other stocks in the space are a bright spot in a sector that has struggled mostly since the election. of Healthcare Select Sector SPDR Fund (XLV) The index fell more than 3% in November, marking the first consecutive three-month decline since last year. In comparison, over a wide range of S&P500 It rose more than 3% for the month.
Gordon Haskett’s Bilson also noted that dental stocks were some of the few health-related stocks that were “saved” as investors reacted to last week’s announcement of President Kennedy’s nomination. Pharmaceutical companies are under pressure following President Kennedy’s reputation as a vaccine skeptic, while processed food stocks suffered as traders braced for increased scrutiny of so-called junk food.
Bilson said the decision to select Kennedy “sparked widespread selling across the medical community.” “Pharmaceutical companies, contract research organizations, and health insurance companies all felt the earthquake. The damage didn’t stop there, it also spread to packaged food and advertising.”
Although the market appears to be moving toward Kennedy’s nomination, Bilson said it will likely take several years for any regulatory changes to take effect. He also pointed out that drinking water should fall under the jurisdiction of the Environmental Protection Agency rather than the Department of Health and Human Services.
