The MAHA Scandal: A Short Seller's Playbook in Healthcare

The Trump administration's Make America Healthy Again (MAHA) Report, once touted as a blueprint for reforming U.S. pediatric health policy, has instead become a symbol of institutional recklessness. Exposed as riddled with fabricated citations, misinterpreted research, and AI-generated errors, the report's credibility has cratered—along with its policy recommendations. For investors, this scandal is a red flag: it signals systemic risks for pharmaceutical and health tech companies tied to MAHA-endorsed initiatives like ADHD medications and asthma treatments. Now is the time to short these stocks and pivot to evidence-based healthcare alternatives.

The MAHA Scandal: A Blueprint for Reputational Ruin

The MAHA Commission's report, released in 2024, aimed to address childhood mental and physical health crises. Instead, it became a case study in scientific malpractice. Key controversies include:
- Fabricated Citations: Non-existent studies were cited to justify claims about ADHD overprescription and asthma drug risks. For example, a nonexistent 2023 JAMA Pediatrics paper on mental health trends was falsely attributed to Dr. Katherine Keyes.
- Misleading Data: Existing studies were distorted to support MAHA's agenda. A 2024 review comparing therapy and medication for depression was misrepresented as a blanket endorsement of non-drug treatments.
- AI-Generated Errors: Experts suspect AI tools were used to generate citations, resulting in garbled references and invented studies. The Trump administration dismissed these flaws as “formatting issues”—a deflection that amplified distrust.

The fallout? Public and professional backlash. The American Medical Association called the report “a threat to scientific integrity,” while lawmakers demanded accountability. For companies tied to MAHA's favored causes—ADHD medications, asthma treatments, and overmedicalization-driven health tech—the reputational damage is existential.

Shorting the Complicit: Stocks to Avoid

The MAHA scandal directly impacts pharmaceutical and health tech firms relying on government-backed health initiatives. Here's why investors should short these sectors:

1. ADHD Medication Makers: A Recipe for Regulatory Headwinds

The MAHA report amplified fears about ADHD drug overprescription, citing non-existent studies to argue for reduced reliance on stimulants like Adderall and Vyvanse. Companies manufacturing these drugs now face dual risks:

• Regulatory Scrutiny: The FDA may reevaluate ADHD drug approvals if the MAHA's claims (however flawed) trigger public demand for stricter prescribing guidelines.
• Demand Volatility: Parents and physicians may grow wary of medications linked to a discredited report, even if the science is sound.

Cingulate's Phase 3 trials for CTx-1301 (a once-daily ADHD stimulant) were hailed as a breakthrough in 2024. But MAHA's attack on ADHD medications has stalled its NDA submission and investor confidence.

2. Asthma Drug Manufacturers: Overprescription Allegations

The MAHA report falsely claimed asthma overprescription was worsening pediatric health, citing a non-existent study on oral corticosteroids. Companies like Sanofi (SNY) and Boehringer Ingelheim (OTCPK:BIEGY), which dominate the asthma inhaler market, now face reputational harm:

• Public Perception: The report's claims may fuel skepticism about asthma medications, even as peer-reviewed research confirms their lifesaving efficacy.
• Price Caps and Profit Pressures: While companies have voluntarily capped inhaler costs, MAHA's credibility crisis could embolden lawmakers to impose stricter price controls.

3. Health Tech Firms Betting on Overmedicalization

Companies like Brightline (which provides MAHA-aligned pediatric mental health services) face a reputational reckoning. The report's emphasis on “overmedicalization” risks painting these firms as complicit in a discredited approach.

• Loss of Trust: Parents may reject digital mental health platforms perceived as tools to push unnecessary treatments.
• Funding Retreat: Investors may withdraw from firms linked to MAHA's narrative, preferring evidence-based alternatives.

The Playbook for Profit: Shift to Evidence-Based Healthcare

The MAHA scandal is a wake-up call to abandon companies relying on dubious policy advocacy. Instead, investors should pivot to healthcare innovators grounded in rigorous science and patient-centric models:

1. Evidence-Based Digital Health

• Headspace (HSPC): Its meditation programs for children (ages 3+) are backed by randomized controlled trials, not politicized reports.
• Modern Health (MODR): Offers personalized mental health plans validated by peer-reviewed outcomes studies.

2. Regenerative Medicine and Precision Therapeutics

• Vertex Pharmaceuticals (VRTX): Leading in cystic fibrosis treatments with genetic precision, far from the MAHA's ADHD/asthma fray.
• CRISPR Therapeutics (CRSP): Focused on curative gene therapies, insulated from reputational risks tied to policy scandals.

3. AI-Driven Diagnostics (Done Right)

• Tempus (TMP): Uses AI to analyze genomic data, not fabricate citations. Its partnerships with academic medical centers ensure scientific rigor.

Final Call to Action: Short Now, Build Tomorrow

The MAHA scandal is no fleeting headline—it's a systemic failure with lasting consequences. For investors, this is a rare moment to profit from institutional hubris:
- Short stocks tied to ADHD/asthma treatments (e.g., CING, SNY, BIEGY) while their reputations—and revenues—erode.
- Buy evidence-based innovators (HSPC, VRTX, CRSP) to position for a healthcare sector reclaiming its scientific soul.

The writing is on the wall: trust in health policy is collapsing. Short the companies riding the MAHA's sinking ship—and invest in solutions that deserve it.