Healthcare Sector Surges, Bio-Techne Soars 21.6% as Dow, S&P 500 Gain
U.S. stock markets ended the week on a mixed note, with the Dow, S&P 500, and Nasdaq Composite gaining 1.1%, 1.08%, and 1.32% respectively, while the S&P 500 Health Care Index Sector (NYSEARCA:XLV) surged over 5.3%.
The week saw significant movements in the healthcare sector. Bio-Techne (TECH) emerged as the top S&P 500 healthcare gainer, soaring 21.60%. Conversely, Quest Diagnostics (DGX) was the top loser, dropping 5.06%.
Wells Fargo upgraded Johnson & Johnson (JNJ) to overweight, citing attractive valuation and pharmaceutical potential. However, Morgan Stanley downgraded Novo Nordisk to underweight due to competition in its GLP-1 franchise.
In notable deals, Pfizer (PFE) agreed to sell four drugs at up to an 85% discount through TrumpRx, leading President Trump to back off his threat of 100% tariffs on imported pharmaceuticals. Meanwhile, Genmab (GMAB) acquired Merus (NASDAQ:MRUS) for nearly $8B, adding petosemtamab to its pipeline.
The healthcare sector's performance was mixed, with significant gains and losses among key players. Major pharmaceutical companies like Pfizer and Genmab made strategic moves, while analysts' opinions varied on companies like Johnson & Johnson and Novo Nordisk. The U.S. stock market indices closed with modest gains, despite the ongoing government shutdown.
