By Jacob Gronholt-Pedersen

COPENHAGEN (Reuters) -Vaccine maker Bavarian Nordic expects the incoming Trump administration to boost biodefence funding despite the nomination of Robert F. Kennedy Jr., a vaccine sceptic, as health secretary, the company's CEO said on Friday.

Shares in European vaccine makers fell on Friday after U.S. President-elect Donald Trump selected Kennedy, who has previously spread misinformation on vaccines, to lead the top health agency.

"Vaccine scepticism was part of Trump's first administration," Bavarian Nordic CEO Paul Chaplin told Reuters in an interview.

"When I look back at his first administration, it was some of the most successful years in terms of the public preparedness business with the U.S. government," he said.

Biodefence is preparing for and responding to potential biological threats, from pandemics to potential biological warfare.

"The only thing I've ever seen with a Republican administration is that the biodefence business and funding goes up," said Chaplin.

Bavarian Nordic is providing the U.S. government with a freeze-dried variant of its smallpox vaccine as part of America's smallpox preparedness strategy. Its current contract with the U.S. government expires in 2027, Chaplin said.

The company's smallpox vaccine is also approved for mpox in certain countries.

Chaplin said he is a bit more concerned how Kennedy will impact the spread of vaccine scepticism and sales for general vaccine programs, which include an anti-rabies treatment.

"It doesn't help when you've got a health secretary who's sceptical of vaccines in convincing the public to take vaccines," Chaplin said.

Shares in Bavarian fell more than 16%, hurt by third-quarter results. Analysts at Sydbank and Kempen told Reuters that the nomination of Kennedy also weighed on the stock.

(Reporting by Jacob Gronholt-PedersenEditing by Stine Jacobsen and Angus MacSwan)