Biotech Breakfast; Last Week’s Biotech Highlights: XBI Climbs +5.5% YTD, AlloVir Drops After Halting Drug Study
Dow (0.05%), S&P 500 +0.17%, Nasdaq +0.19%, Russell 2000 +0.84%
In a notable performance last week, healthcare equities closed mostly higher on Friday, setting a positive tone ahead of the holiday weekend. The healthcare sector saw a +0.49% increase, outpacing the S&P 500’s gain of +0.17%. Biotechnology stood out as the leading segment, with the XBI (SPDR S&P Biotech ETF) surging by +3.48% and achieving an impressive +5.57% rise year-to-date.
Among the day’s significant gainers were Karuna Therapeutics ($KRTX), which skyrocketed by +47.7% following news of its impending $15 billion cash acquisition by Bristol-Myer Squibbs, PureTech Health ($PRTC) enjoying a robust +36.0% rise, and Neumora Therapeutics ($NMRA) closing up +25.1%. However, the day was not without its downturns, notably marked by AlloVir ($ALVR), which plummeted by (67.2%) after announcing the discontinuation of its Phase 3 studies of the T-cell immunity drug, posoleucel, coupled with a downgrade at Piper Sandler. HOOKIPA Pharma also experienced a decline of (16.52%), despite being up by +16% week-to-date, and Glaukos ($GKOS) ended the day down by (3.3%).
PRISM MarketView’s Emerging Biotech Index, which tracks the progress of micro and small cap companies in healthcare innovation and economic growth, saw top performances from Sorrento Therapeutics ($SRNEQ) with a 42.11% rise after engaging legal counsel to investigate potential short selling of its stock, Telesis Bio ($TBIO) ending up 5.66%, and Inovio Pharmaceuticals ($INO) gaining 8.29%. On the downside, Theriva Biologics ($TOVX) fell by 14.21%, Addex Therapeutics ($ADXN) lost 9.16%, and Immuron Ltd ($IMRN) declined by 5.34% despite completing the in-patient phase of its clinical trial for a campylobacter treatment.
The Trader’s Lens
$ALXO looks to be coming up to an important price point on its weekly chart.
$STIM is leading the Prism MarketView MedDevices index today. The stock has been on a pretty good run the last couple of months and is making a V pattern on its weekly chart. A break and close above $3 could lead to some further upside.
Last week’s headlines
The medical device market, a vital sector in healthcare, is navigating through a period of adjustment and recovery. Medical device companies, encompassing a wide range of products from basic tools like tongue depressors to advanced MRI machines, form an essential part of healthcare delivery.
Structure Therapeutics Falls 41% on GLP-1 Drug Update
Structure Therapeutics Inc. (Nasdaq: GPCR) has provided a program update for its highly selective oral GLP-1 receptor agonist, GSBR-1290. The drug demonstrated clinically meaningful activity in both Type 2 diabetes (T2DM) and obesity cohorts, disappointing analysts who highlighted that the GLP-1 drug candidate is less efficacious than, and not currently a competitive threat to Eli Lilly’s (NYSE: LLY) orforglipron.
Organon Partners with Lilly to Commercialize Migraine Medications in Europe
Global healthcare company, Organon (NYSE: OGN), has entered an agreement with Eli Lilly and Company (NYSE: LLY) to become the sole distributor and promoter for the migraine medicines Emgality® (galcanezumab) and RAYVOW™ (lasmiditan) in Europe.
MindMed Advances Treatment for Generalized Anxiety Disorder
Biopharmaceutical company, Mind Medicine (Nasdaq: MNMD) has announced positive results from its Phase 2b clinical trial of MM-120 (lysergide d-tartrate) in generalized anxiety disorder (GAD). The trial met its primary endpoint, with MM-120 demonstrating statistically significant and clinically meaningful dose-dependent improvements.
Creative Medical Technology Granted FDA Clearance for Chronic Back Pain Clinical Trial
Creative Medical Technology Holdings, Inc. (Nasdaq: CELZ) has received FDA clearance to conduct a phase 1/2 clinical trial using the company’s innovative StemSpine® treatment known as AlloStem™ (CELZ-201-DDT).
