Here’s Why a Handful of Pharmaceutical Stocks Rose Wednesday
Key Takeaways
Shares of several drugmakers and biotechnology firms moved higher on Wednesday, notching some of the day’s top performances in the S&P 500.
Various regulatory decisions and clinical trial results boosted the top-performing pharmaceutical stocks: Gilead Sciences (
GILD
), Bristol-Myers Squibb (
BMY
) and Vertex Pharmaceuticals (
VRTX
).
FDA Approvals, Clinical Results Drive Price Action
Shares of Gilead Sciences rose about 2%, extending a multiday string of gains that has followed the approval of Livdelzi, a treatment for inflammatory liver disease that received clearance from the Food and Drug Administration (
FDA
) on Aug. 14. Gilead has also drawn positive attention for its portfolio of HIV treatments.
Bristol-Myers Squibb (
BMY
)Â shares added close to 2% after competitor Neurocrine Biosciences (
NBIX
) released mixed results from a mid-stage clinical trial of its schizophrenia treatment. Although a low dose of Neurocrine’s drug helped reduce the severity of schizophrenia symptoms, the study raised concerns about whether the benefits would carry over in larger trials. Bristol-Myers Squibb’s schizophrenia treatment KarXT is set for an approval decision from the FDA in September.
Vertex Pharmaceuticals (
VRTX
) shares were up almost 2% after the company said the FDA approved its new drug application for suzetrigine, an oral treatment designed to alleviate moderate to severe pain. The drug has reportedly been granted a priority evaluation from the regulator, with a projected action date of Jan. 30.
Pharmaceutical Industry Performance
While much of the market’s attention has been focused on blockbuster weight-loss treatments from Eli Lilly (
LLY
) and Novo Nordisk (
NVO
), overall stock market returns in the industry have been relatively subdued this year. The SPDR S&P Pharmaceuticals ETF (
XPH
) is up around 7% in 2024, compared with gains of roughly 17% for the S&P 500.
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