Here’s Why a Handful of Pharmaceutical Stocks Rose Wednesday

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) 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.