In this article, dental care supplier Henry Schein saw an increase in trading on Monday as investors speculated that Robert F. Kennedy Jr., President-elect Donald Trump’s choice for Health and Human Services secretary, might propose removing fluoride from the U.S. water system. This move could potentially result in a surge in dental visits. Henry Schein’s shares rose by approximately 7.5%, marking its strongest performance since 2022. Other dental product manufacturers such as Dentsply Sirona and Envista also experienced gains during the session.
Investors are preparing for potential changes in public health policies under a second Trump administration. Kennedy had previously stated on X before the recent presidential election that a “Trump White House will advise all U.S. water systems to remove fluoride from public water.” Fluoride has been recognized as an effective method for combating cavities, but it has become a contentious issue leading some local communities to discontinue programs involving its addition to public water.
Although Kennedy’s appointment would require Senate approval, market observers are already focusing on dental hygiene product companies as potential beneficiaries of his proposed policies. Removing fluoride from water could increase demand for tooth cleaning products as consumers seek alternative methods to prevent cavities, as suggested by Gordon Haskett.
According to Don Bilson, head of event-driven research at Gordon Haskett, “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. This will, in turn, lead to an acceleration of tooth decay and more dental visits.” Henry Schein’s shares rose further in afternoon trading following a Reuters report that activist investor Ananym Capital was advocating for changes within the company.
Henry Schein and other related stocks are showing resilience in a sector that has faced challenges since the election. The Health Care Select Sector SPDR Fund (XLV) has declined by over 3% in November, potentially heading for its first three-month losing streak since the previous year. Dental stocks were among the few health-focused equities that were not negatively impacted by Kennedy’s nomination. Pharmaceutical companies faced pressure due to Kennedy’s stance on vaccines, while processed food stocks suffered as traders anticipated increased scrutiny on unhealthy foods.
Bilson highlighted that the market reaction to Kennedy’s nomination may be short-term, as regulatory changes could take years to materialize. He also mentioned that oversight of drinking water should fall more under the Environmental Protection Agency rather than Health and Human Services.
